Q2 2024 Piedmont Lithium Inc Earnings Call

August 8, 2024

Thank you for standing by. My name is Marbelou and I will be your conference call operator today. At this time, I would like to welcome everyone to the Q2 2024 Piedmont Lithium Earnings Call. All lines have been placed on mute to prevent any background noise.

Operator: At this time, I would like to welcome everyone to the Q2 2024 Piedmont Lithium Learning School. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press "far," follow bit number one on your telephone keypad. If you would like to withdraw your question, press far one again. Thank you.

Speaker Change: After the speaker's remarks, there will be a question and answer session.

Speaker Change: If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, press star 1 again.

Erin Sanders: I will now turn to Cole over to Erin Sanders, Senior Vice President of Corporate Communications and Investor Relations.

Speaker Change: Thank you. I will now turn the call over to Erin Sanders, Senior Vice President of Corporate Communications and Investor Relations. Please go ahead.

Erin Sanders: Please go ahead. Thank you, operator, and good morning, everyone. Welcome to Piedmont Lithium's second quarter 2024 earnings call.

Operator: Thank you, operator, and good morning, everyone. Welcome to Piedmont Lithium's second quarter 2024 earnings call. Joining us today from Piedmont Lithium are Keith Phillips, President and Chief Executive Officer, who will provide the introductory remarks. Michael White, Chief Financial Officer, will then review our financial results, followed by Patrick Brindle, Chief Operating Officer, who will offer an update on our commercial activities and projects. As a reminder, today's discussion will contain four forward-looking statements relating to future events and expectations that are subject to various assumptions and caveats.

Operator: Operator, and good morning everyone. Welcome to Piedmont Lithium's second quarter 2024 earnings call. Joining us today from Piedmont Lithium are Keith Phillips, President and Chief Executive Officer, who will provide the introductory remarks. Michael White, Chief Financial Officer, will then review our financial results, followed by Patrick Brindle, Chief Operating Officer, who will offer an update on our commercial activities and projects. Keith will then provide closing commentary before we transition to a live Q&A session.

Operator: Factors that may cause the company's actual results to differ materially from these statements are included in today's presentation, earnings release, and in our SEC filing. Please note that copies of our earnings release and presentation, as well as a replay of this call, will be available on our website, piedmontlithium.com.

Patrick Brindle: NAL has successfully cleared the gates of both the operational restart and ramp-up and is positioned to capitalize on any future lithium price recovery.

Michael White: We ended the quarter with $59 million in cash, and our second quarter gap net loss was $13.3 million, or a loss of $0.69 per share, and adjusted net loss was $12.7 million, or a loss of $0.65 cents on an adjusted per share basis. Turning to slide seven for sources and uses of cash.

Erin Sanders: Thank you, operator, and good morning, everyone. Welcome to Piedmont Lithium's second quarter 2024 earnings call.

Patrick Brindle: Within Investments & Affiliates was a $5 million investment in North American Lithium, which included completion of the crushed ore dome and marks the finalization of restart CapEx for the operation. We expect to recognize the majority of our annual cost savings in the current year. We plan to ship approximately 96,000 tons in the second half, which aligns with the production outlook and customer allocation of tons from our joint venture at North American Lithium. The key takeaway from our CapEx and Investments Outlook is that project-related expenditures are greatly reduced compared to the first half of the year.

Patrick Brindle: Lithium recovery and mill utilization achieved new quarterly highs of 68% and 83%, respectively. With the ramp-up effectively completed, we expect continued steady-state production levels for the remainder of the year, with incremental improvement to quarterly utilization rates. NAL's drill program also returned additional positive results in the quarter, with assays identifying multiple new high-grade lithium zones beyond the current ultimate pitch shell. Management will use these data and focus on the potential for a significant upgrade to NAL's mineral resources estimate.

Patrick Brindle: The forward price curves on this slide for CME Lithium Hydroxide and GFEX Lithium Carbonate have been in contango for most of 2024, and this trend appears to continue into 2025. Starting earlier this year, we began working with a trading partner to capitalize on this situation. We structured spot sales beginning in Q2 of this year so that we can mitigate downside price exposure and avoid M plus one settlement pricing in a falling price environment, which had negative consequences for us on shipments we made in 2023.

Patrick Brindle: Our process is going well, with initial outreach calls completed, and we will continue with these efforts. That concludes our commercial and projects update. With that, I'll turn it back to Keith for an update on the market and our funding strategies.

Erin Sanders: Joining us today from Piedmont Lithium are Keith Phillips, President and Chief Executive Officer, who will provide the introductory remarks. Michael White, Chief Financial Officer, will then review our financial results, followed by Patrick Brindle, Chief Operating Officer, who will offer an update on our commercial activities and projects.

Keith Phillips: Joining us today from Piedmont Lithium are Keith Phillips, President and Chief Executive Officer, who will provide the introductory remarks.

Speaker Change: Michael White, Chief Financial Officer, will then review our financial results, followed by Patrick Brindle, Chief Operating Officer, who will offer an update on our commercial activities and projects.

Erin Sanders: Keith will then provide closing commentary before we transition to a live Q&A session.

Speaker Change: Keith will then provide closing commentary before we transition to a live Q&A session.

Erin Sanders: As a reminder, today's discussion will contain forward-looking statements relating to future events and expectations that are subject to various assumptions and caveats. Factors that may cause the company's actual results to differ materially from these statements are included in today's presentation, earnings release, and in our SEC filings. In addition, we have included non-GAAP financial measures in this presentation. Reconciliation to the most directly comparable GAAP financial measures can be found in today's earnings release and the appendix of today's slide presentation. Any reference in our discussion today to EBITDA means Adjusted EBITDA. Further, references to shipments are shipments of Spodgaming concentrate and tons are dry metric tons.

Operator: As a reminder, today's discussion will contain four forward-looking statements relating to future events and expectations that are subject to various assumptions and caveats. Factors that may cause the company's actual results to differ materially from these statements are included in today's presentation, earnings release, and in our SEC filing. In addition, we have included non-GAAP financial measures in this presentation. Reconciliations to the most directly comparable GAAP financial measures can be found in today's earnings release and the appendix to today's slide presentation. Any reference in our discussion today to EBIDA means adjusted EBIDA. Further references to shipments are shipments of spodumene concentrate, and tons are dry metric.

Speaker Change: As a reminder, today's discussion will contain four looking statements relating to future events and expectations that are subject to various assumptions and caveats.

Speaker Change: factors that may cause the company's actual results to differ materially from these statements are included in today's presentation earnings release and in our sec filings

Speaker Change: In addition, we have included non-GAAP financial measures in this presentation. Reconciliations to the most directly comparable GAAP financial measures can be found in today's earning release and the appendix to today's slide presentation.

Speaker Change: any reference in our discussion today to ebitda means adjusted ebitda further references to shipments or shipments of spoting concentrate and tons are dry metric tonth

Operator: Please note that copies of our earnings release and presentation, as well as a replay of this call, will be available on our website, piedmontlithium.com. With that, I'll turn the call over to Keith Phillips.

Erin Sanders: Please note that copies of our earnings release and presentation, as well as a replay of this call, will be available on our website, PiedmontLithium.com.

Speaker Change: Please note that copies of our earnings release and presentation as well as a replay of this call will be available on our website PiedmontLithium.com

Keith Phillips: With that, I'll turn the call over to Keith Phillips.

Keith Phillips: Keith? Thanks, Aaron, and thank you all for joining us today for Piedmont Lithium's second quarter 2024 earnings call. As I like to do at the start of these calls, I will quickly reiterate our mission and strategy for those of you who may be new to Piedmont Lithium and our story. Piedmont is one of only two US-domiciled lithium companies actively supplying the market today. Our mission is to be a leading North American supplier of lithium products to support the electrification revolution and the battery manufacturing industry. Our strategy is based on hard rock production. We believe Spodgaming Concentrate represents the lowest risk and most commercially scalable raw material resource.

Speaker Change: With that, I'll turn the call over to Keith Phillips. Keith?

Keith Phillips: Thanks, Erin, and thank you all for joining us today for Piedmont Lithium's second quarter 2024 earnings call. As I like to do at the start of these calls, I will quickly reiterate our mission and strategy for those of you who may be new to Piedmont Lithium and our story. Piedmont is one of only two U.S.-domiciled lithium companies actively supplying the market today. Our mission is to be a leading North American supplier of lithium products to support the electrification revolution in the battery manufacturing industry. Our strategy is based on hard rock production, and we believe spodumene concentrate represents the lowest risk and most commercially scalable raw material resource.

Speaker Change: peadmont is one of only two u s omicidide lithum companies actively supplying the market today our missionis to be a leading in north american supplier of lthum products to support the electrification revolution and the battery manufacturing industry

Keith Phillips: Our strategy is based on hard rock production. We believe spodumene concentrate represents the lowest risk and most commercially scalable raw material resource. Our goal is to play a key role in U.S. efforts to reduce our country's reliance on foreign nations for critical materials, which is crucial to the future of our nation's energy security.

Keith Phillips: Our goal is to play a key role in U.S. efforts to reduce our country's reliance on foreign nations for critical materials, which is crucial to the future of our nation's energy security. Turning to the key themes for the second quarter, and today, you'll hear about North American lithium achieving steady-state operations and other positive things happening in Quebec. We'll also discuss our decision to consolidate our U.S. lithium hydroxide development strategy. We'll talk about our refined commercial strategy for the second half to improve pricing realizations while meeting shipment guidance, our progress toward our $10 million 2024 cost reduction plan, and finally, an update on our theme from the first quarter, a year of two halves, with a significant curtailment in capital and investment spending in the second half and also a significant increase Those are the key points we'll cover, and the through line you'll hear throughout this call is strategic perseverance.

Keith Phillips: Turning to the key themes for the second quarter, today you'll hear about North American Lithium achieving steady state operations and other positive things happening in Quebec.

Speaker Change: we will also discuss our decision to consolidate our u s lium hydroxide development strategy we'll talk about our refined commercial strategy for the second half to improve pricing realizations while meeting shipment guidance

Keith Phillips: our progress toward our $10 million 2024 cost reduction plan, and finally, an update on our theme from the first quarter, a year of two halves, with a significant curtailment in capital and investment spending in the second half, and also a significant increase in Spodumene shipments in the second half of this year.

Keith Phillips: And finally, an update on our theme from the first quarter, a year of two halves, with a significant curtailment in capital investment spending in the second half, and also a significant increase in Spodgy Meat Shipments in the second half of this year.

Keith Phillips: Those are the key points we'll cover, and the through line deal here throughout this call is strategic perseverance. Like many others in the lithium market, our focus in 2024 has been to position Piedmont to weather the prevailing pricing down cycle, preserve our assets, and fortify the upside potential of our global portfolio. Our second half 2024 plans are designed for two things: smart capital deployment and cost savings so that when the lithium demand crunch hits and the market turns, as we believe it will, Piedmont will be in a ready position to leverage our business. So let's look at our key focus areas by project North American Lithium. Already the largest lithium operation in North America, it continues to demonstrate this potential as an excellent asset. In the second quarter, NAL again broke production records while reaching new highs in lithium recovery and mill utilization rates.

Keith Phillips: Like many others in the lithium market, our focus in 2024 has been to position Piedmont to weather the prevailing pricing down cycle, preserve our assets, and fortify the upside potential of our global portfolio. Our second half 2024 plans are designed for two things, smart capital deployment and cost savings, so that when the lithium demand crunch hits and the market turns, as we believe it will, Piedmont will be in a ready position to leverage its business. So let's look at our key focus areas by project.

Keith Phillips: Those are the key points we'll cover, and the through line that you'll hear throughout this call is strategic perseverance. Like many others in the lithium market, our focus in 2024 has been to position Piedmont to weather the prevailing pricing down cycle, preserve our assets, and fortify the upside potential of our global portfolio.

Keith Phillips: Our second half 2024 plans are designed for two things, smart capital deployment and cost savings, so that when the lithium demand crunch hits and the market turns, as we believe it will, Piedmont will be in a ready position to leverage our business.

Keith Phillips: North American Lithium, already the largest lithium operation in North America, continues to demonstrate its potential as an excellent asset. In the second quarter, NAL again broke production records while reaching new highs in lithium recovery and mill utilization rates. The focus in the second half of the year is to continue steady state operations and drive a reduction in unit operating costs.

Keith Phillips: So let's look at our key focus areas by project. North American lithium, already the largest lithium operation in North America, continues to demonstrate its potential as an excellent asset.

Speaker Change: in the second quarter nnal again broke production recorcord while reaching new highs and lithum recovery and mill utilization rates the focus in the second half of the year is to continue steady state operations and drive reduction to unit operating costs

Keith Phillips: The focus in the second half of the year is to continue steady state operations and drive reductions in unit operating costs. The Sion and management team is also planning an update to NAL's mineral resource update following additional high-grade drill results in the second quarter. Obviously, as mineral resources and reserves grow, the potential for further growth in annual production at NAL will be evaluated. NAL has successfully cleared the gates of both operational restart and ramp up and is positioned to capitalize on any future lithium price recovery. For our Roya joint venture in Ghana, we have mandated the financial advisor to help secure our share of the project's construction capital.

Keith Phillips: The CYANA management team is also planning an update to NAL's mineral resource update following additional high-grade drill results in the second quarter. Obviously, as mineral resources and reserves grow, the potential for further growth in annual production at NAL will be evaluated. NAL has successfully cleared the gates of both operational restart and ramp-up and is positioned to capitalize on any future lithium price recovery. For our AWOIA joint venture in Ghana, we have mandated the financial advisor to help secure our share of the project's construction capital.

Keith Phillips: nl has successfully cleared the gates of both operational restart and ramp up and is positioned to capitalize on any future li pressure recovery

Keith Phillips: For our Loya joint venture in Ghana, we have mandated the financial advisor to help secure our share of the project's construction capital. That process has kicked off and the early feedback from potential offtake partners is very encouraging.

Keith Phillips: That process is kicked off, and the early feedback from potential offtake partners is very encouraging. With approvals at a Roya ongoing, we expect advances to Atlantic Lithium to reduce in the near term and since the offtake from a Roya will no longer be required as feedstock for Tennessee Lithium and offtake partner funding opportunity has been created for Piedmont.

Keith Phillips: That process has kicked off, and the early feedback from potential offtake partners is very encouraging. With approvals at AWOIA ongoing, we expect advances to Atlantic Lithium to decrease in the near term. And since the offtake from AWOIA will no longer be required as feedstock for Tennessee Lithium, an offtake partner funding opportunity has been created for Piedmont. In the United States, we've made a strategic decision. Given market conditions and the receipt of the Carolina mining permit in the second quarter, we've made the decision to consolidate Tennessee Lithium's planned lithium hydroxide capacity into a second train in North Carolina.

Speaker Change: with approvals at awar ongoing we expect advances to atlantic lith into reduc in the near term and since the offtake from a oya will no longer be required a feedstock fortennessee lithum and offtake partner funding opportunity has been created for p month

Keith Phillips: In the United States, we've made a strategic decision given market conditions and the receipt of the Carolina mining permit in the second quarter. We've made the decision to consolidate Tennessee lithium's planned lithium hydroxide capacity into a second train in North Carolina. Our plan is to construct the trains and a phased approach. We believe developing Carolina lithium as a multi-phased larger operation is the right move for Piedmont and our shareholders to deploy capital and technical resources more efficiently. The bulk of the front end engineering work completed for the Tennessee facility is directly transferable to Carolina. They were always planned as twin facilities, and the 60,000 ton per year air permit that we continue to pursue with North Carolina's Division of Air Quality would support the increased tonnage.

Speaker Change: In the United States, we've made a strategic decision. Given market conditions and the receipt of the Carolina mining permit in the second quarter, we've made the decision to consolidate Tennessee Lithium's planned lithium hydroxide capacity into a second train in North Carolina. Our plan is to construct the trains in a phased approach.

Keith Phillips: Our plan is to construct the trains in a phased approach. We believe developing Carolina lithium as a multi-phase larger operation is the right move for Piedmont and our shareholders to deploy capital and technical resources more efficiently. The bulk of the front-end engineering work completed for the Tennessee facility is directly transferable to Carolina. They were always planned as twin facilities.

Speaker Change: we believe developing carolina lifum as a mtiphase larger operation is the right move for pmont and our shareholders to deploy capital and technical resources more efficiently

Speaker Change: The bulk of the front-end engineering work completed for the Tennessee facility is directly transferable to Carolina. They were always planned as twin facilities. And the 60,000 ton per year air permit that we continue to pursue with North Carolina's Division of Air Quality would support the increased tonnage.

Michael White: And the 60,000 ton per year air permit that we continue to pursue with North Carolina's Division of Air Quality would support the increased tonnage. With the receipt of the North Carolina state mining permit, we've taken the opportunity to re-engage in active discussions with potential strategic partners. As you might imagine, the idea of an integrated spodumene hydroxide project in the southeastern United States holds great appeal for a number of important players in the supply chain.

Keith Phillips: With the receipt of the Carolina State mining permit, we've taken the opportunity to reengage in active discussions with potential strategic partners. As you might have managed in the idea of an integrated spodge of me, the hydroxide project in the southeast of the United States holds great appeal for a number of important players in the supply chain. In the near term, our key areas of focus will be funding, permitting, and approvals. However, we are progressing our development of Carolina on a conservative timeline, with an eye on the dynamic market conditions. Ultimately, higher lithium prices will be required to support the development of lithium projects, hours, and others that will be necessary to meet projected demand.

Speaker Change: With the receipt of the Carolina State Mining Permit, we have taken the opportunity to re-engage in active discussions with potential strategic partners. As you might imagine, the idea of an integrated spodumene hydroxide project in the southeastern United States holds great appeal for a number of important players in the supply chain.

Michael White: In the near term, our key areas of focus will be funding, permitting, and approvals. However, we are progressing our development of Carolina on a conservative timeline with an eye on dynamic market conditions. Ultimately, higher lithium prices will be required to support the development of lithium projects, ours and others, that will be necessary to meet projected demand. I'll speak more about our thoughts on supply, demand, and the market shortly. Now Michael will provide a detailed discussion of our second quarter financial performance. Michael.

Speaker Change: In the near term, our key areas of focus will be funding, permitting, and approvals. However, we are progressing our development of Carolina on a conservative timeline, with an eye on the dynamic market conditions.

Speaker Change: ultimately higher lesslithium prices will be required to support the development of lithum project ours and others that will be necessary to meet projected demand i'll speak more about our thoughts on supply demand and the market shortly

Keith Phillips: and I'll speak more about our thoughts on supply, demand, and the market shortly.

Michael White: Now, Michael will provide a detailed discussion of our second quarter of financial performance.

Keith Phillips: Now Michael will provide a detailed discussion of our second quarter financial performance. Michael.

Michael White: Michael. Thanks, Keith. Turning to slide six, I'd like to provide a high-level review of our second quarter results. We shipped approximately 14,000 dry metric tons for the quarter and recognized 13.2 million in revenue, resulting in a realized price of $945 per metric ton. This compares to a realized cost per metric ton of $900. Included in the realized price per ton were logistics costs, which are many times recorded as an offset to revenue depending on who bears responsibility for shipping and a downward provisional pricing adjustment associated with shipments in prior quarters. We ended the quarter with 59 million in cash, and second quarter gap net loss was 13.3 million, or a loss of 69 cents per share, and adjusted net loss was 12.7 million, or a loss of 65 cents on an adjusted per share basis.

Michael White: Thanks, Keith. Turning to slide six, I'd like to provide a high-level review of our second quarter results. We shipped approximately 14,000 dry metric tons for the quarter and recognized $13.2 million in revenue, resulting in a realized price of $945 per metric ton. This compares to a realized cost per metric ton of $900. Included in the realized price per ton were logistics costs, which are many times recorded as an offset to revenue depending on who bears responsibility for shipping, and a downward provisional pricing adjustment associated with shipments in prior quarters.

Michael White: Thanks, Keith.

Michael White: Turning to slide six, I'd like to provide a high-level review of our second quarter results.

Michael White: We shipped approximately 14,000 dry metric tons for the quarter and recognized $13.2 million in revenue, resulting in a realized price of $945 per metric ton. This compares to a realized cost per metric ton of $900.

Michael White: Included in the realized price per ton were logistics costs, which are many times recorded as an offset to revenue depending on who bears responsibility for shipping, and a downward provisional pricing adjustment associated with shipments in prior quarters.

Michael White: We ended the quarter with $59 million in cash, and our second quarter gap net loss was $13.3 million for a loss of $0.69 per share, and adjusted net loss was $12.7 million for a loss of $0.65 cents on an adjusted per share basis. Turning to slide seven for sources and uses of cash. Our beginning and ending cash positions for the quarter were $71 million and $59 million, respectively. During the quarter, and as part of our 2024 cost savings plan, we reduced CAPEX to a modest $3 million.

Michael White: We ended the quarter with $59 million in cash, and second quarter gap net loss was $13.3 million for a loss of $0.69 per share, and adjusted net loss was $12.7 million for a loss of $0.65 cents on an adjusted per share basis.

Michael White: Turning to slide seven for sources and uses of cash, our beginning and ending cash positions for the quarter were 71 million and 59 million dollars, respectively. During the quarter and as part of our 2024 cost savings plan, we reduced CAPEX to a modest $3 million. We expect further reductions in CAPEX in the third and fourth quarters of 2024, which I'll discuss shortly. Within investments and affiliates was a $5 million investment in North American Lithium, which includes completion of the crushed ore dome and marks finalization of restart CAPEX for the operation.

Michael White: Turning to slide 7 for sources and uses of cash.

Michael White: Our beginning and ending cash positions for the quarter were $71 million and $59 million respectively.

Michael White: During the quarter, and as part of our 2024 cost savings plan, we reduced CapEx to a modest $3 million. We expect further reductions in CapEx in the third and fourth quarters of 2024, which I'll discuss shortly.

Michael White: We expect further reductions in CAPEX in the third and fourth quarters of 2024, which I'll discuss shortly. Also, within Investments & Affiliates was a $5 million investment in North American Lithium, which includes completion of the crushed ore dome and marks finalization of restart CAPEX for the operation. Let's move to slide 8.

Michael White: Within Investments & Affiliates was a $5 million investment in North American Lithium, which includes completion of the crushed ore dome and marks finalization of restart CapEx for the operation.

Michael White: Let's move to slide eight. It's imperative that we are appropriately managing our cost during the down cycle, and while we do not know how long the down cycle will last, we are committed and taking action to right sizing our cost structure in a thoughtful yet agile manner. Let's break this down into two areas. First, on our last earnings call, we discussed the commencement of our 2024 cost savings plan with a target of more than $10 million in annual run rate savings associated with our operating cost structure. Additionally, the plan included reductions in both CAPEX and cash investments and advances to our joint ventures.

Michael White: It's imperative that we are appropriately managing our costs during the down cycle. And while we do not know how long the down cycle will last, we are committed to and taking action to right-sizing our cost structure in a thoughtful yet agile manner. Let's break this down into two areas.

Michael White: Let's move to slide eight.

Michael White: It's imperative that we are appropriately managing our costs during the down cycle. And while we do not know how long the down cycle will last, we are committed and taking action to right-sizing our cost structure in a thoughtful yet agile manner. Let's break this down into two areas.

Michael White: First, on our last earnings call, we discussed the commencement of our 2024 cost savings plan with a target of more than $10 million in annual run rate savings associated with our operating cost structure. Additionally, the plan included reductions in both CAPEX and cash investments and advances to our joint ventures. I'm pleased to note that we have achieved our $10 million run rate target, and we have been able to greatly reduce our second half 2024 CapEx and joint venture spending by supporting certain cost reductions and cost deferrals to 2025, and in some cases, beyond 2025.

Michael White: Additionally, the plan included reductions in both CapEx and cash investments and advances to our joint ventures.

Michael White: I'm pleased to note that we have achieved our $10 million run rate target, and we have been able to greatly reduce our second half 2024 CAPEX and joint venture spending by supporting certain cost reductions and cost deferrals to 2025. And in some cases beyond 2025, we expect to recognize the majority of our annual cost savings in the current year. As noted on this slide, actions to reduce our annual run rate savings included headcount reductions made during the first quarter, office consolidation at our headquarters in North Carolina, and cutting of certain third-party and internal spending. Second, we are evaluating further reductions within our operating cost structure and capital expenditures, and we are working with our joint venture partners to lower planned expenditures during this down cycle.

Michael White: I'm pleased to note that we have achieved our $10 million run rate target, and we have been able to greatly reduce our second half 2024 CapEx and joint venture spending by supporting certain cost reductions and cost deferrals to 2025, and in some cases, beyond 2025.

Michael White: We expect to recognize the majority of our annual cost savings in the current year. As noted on this slide, actions to reduce our annual run rate savings included headcount reductions made during the first quarter, office consolidation at our headquarters in North Carolina, and the cutting of certain third-party and internal spending. Second, we are evaluating further reductions within our operating cost structure and capital expenditures, and we are working with our joint venture partners to lower planned expenditures during this down cycle.

Michael White: We expect to recognize the majority of our annual cost savings in the current year.

Michael White: as noted on this slide actions to reduce our annual run rate savings included headcount reductions made during the first quarter office consolidation at our headquarters in north carolina and cutting of certain third party and internal spending

Michael White: Second, we are evaluating further reductions within our operating cost structure and capital expenditures, and we are working with our joint venture partners to lower planned expenditures during this down cycle.

Michael White: Russell. Lastly, we are executing our consolidation strategy of Tennessee Lithium and Carolina Lithium, as Keith previously mentioned.

Michael White: Lastly, we are executing our consolidation strategy of Tennessee Lithium into Carolina Lithium, as Keith previously mentioned. Now, let's turn to slide nine for the second half outlook. We are maintaining our full year outlook for shipments of approximately 126,000 dry metric tons in 2024. As reported, we shipped approximately 30,000 tons in the first half of the year.

Michael White: Lastly, we are executing our consolidation strategy of Tennessee Lithium into Carolina Lithium, as Keith previously mentioned.

Michael White: Now let's turn to slide nine for the second half outlook. We are maintaining our full year outlook for shipments of approximately 126,000 dry metric tons in 2024. As reported, we shipped approximately 30,000 tons in the first half of the year. We planned a ship approximately 96,000 tons in the second half, which aligns with the production outlook and customer allocation of tons from our joint venture at North American Lithium. Of course, certain factors, including shipping constraints and customer requirements, may impact the timing of future shipments.

Patrick Brindle: We plan to ship approximately 96,000 tons in the second half, which aligns with the production outlook and customer allocation of tons from our joint venture at North American Lithium. Of course, certain factors, including shipping constraints and customer requirements, may impact the timing of future shipments. Patrick will provide a more detailed commercial strategy update in a moment. The key takeaway from our CapEx and Investments Outlook is that project-related expenditures are greatly reduced compared to the first half of the year.

Keith Phillips: Now let's turn to slide 9 for the second half outlook.

Keith Phillips: We are maintaining our full-year outlook for shipments of approximately 126,000 dry metric tons in 2024. As reported, we shipped approximately 30,000 tons in the first half of the year.

Keith Phillips: We plan to ship approximately 96,000 tons in the second half, which aligns with the production outlook and customer allocation of tons from our joint venture at North American Lithium. Of course, certain factors, including shipping constraints and customer requirements, may impact the timing of future shipments.

Michael White: Patrick will provide a more detailed commercial strategy update in a moment. The key takeaway in our CAPEX and investments outlook is that project-related expenditures are greatly reduced compared to the first half of the year. Capital expenditures remain on track for our guidance of $3 to $5 million in the second half of the year and relate mainly to Carolina Lithium. Our joint venture investments in Q2 were lower than anticipated. Further, with the restart of North American Lithium's capital program having been completed and the ongoing approval process at Ooya, we expect our joint venture funding to reduce substantially in the second half of 2024 compared to the first half.

Michael White: Patrick will provide a more detailed commercial strategy update in a moment.

Patrick Brindle: The key takeaway in our CapEx and Investments Outlook is that project-related expenditures are greatly reduced compared to the first half of the year.

Patrick Brindle: Capital expenditures remain on track for our guidance of $3-5 million in the second half of the year and relate mainly to Carolina Lithium. However, our joint venture investments in Q2 were lower than anticipated. Further, with the restart of North American Lithium's capital program having been completed and the ongoing approval process at AWOIA, we expect our joint venture funding to reduce substantially in the second half of 2024 compared to the first half. Given those considerations, we have provided tighter ranges for our full-year guidance in these areas. As always, our outlook is subject to changes in market conditions. And with that, I'll turn it over to Patrick Brindle for a review of operations and project updates.

Patrick Brindle: Capital expenditures remain on track for our guidance of $3-5 million in the second half of the year and relate mainly to Carolina Lithium. Our joint venture investments in Q2 were lower than anticipated.

Patrick Brindle: Further, with the restart of North American Lithium's capital program having been completed and the ongoing approval process at AWOIA, we expect our joint venture funding to reduce substantially in the second half of 2024 compared to the first half.

Michael White: Given those considerations, we have provided tighter ranges for our full-year guidance in these areas. As always, our outlook is subject to changes in market conditions.

Patrick Brindle: Given those considerations, we have provided tighter ranges for our full-year guidance in these areas. As always, our outlook is subject to changes in market conditions. And with that, I'll turn it over to Patrick Brindle for a review of operations and project updates.

Patrick Brindle: And with that, I'll turn it over to Patrick Brindle for review of operations and project updates.

Patrick Brindle: Thanks, Michael. We can now turn to slide 11 for an update on operational performance at NAL. As Keith noted, ramping up at NAL has gone well. Commissioning of the crushed ore dome this past quarter represents the completion of the capital spending of the NAL restart program that began in 2022. Steady state production at full run rate was achieved in June 2024, ahead of our second half 24 forecast. Given its history, North American lithium may be the least understood asset in the industry.

Patrick Brindle: Thanks, Michael. We can now turn to slide 11 for an update on operational performance at NAL. As Keith noted, ramp up at NAL has gone well; commissioning of the crushed word dome this past quarter represents the completion of the capital spending of the NAL restart program that began in 2022. Steady state production at full run rate was achieved in June 2024, ahead of our second half 24 forecast.

Patrick Brindle: thanks michael we can now turn to slide eleven for an update on operational performance at nl

Patrick Brindle: As Keith noted, ramp up at NAL has gone well. Commissioning of the Crushed Door Dome this past quarter represents the completion of the capital spending of the NAL Restart Program that began in 2022.

Patrick Brindle: Steady state production at full run rate was achieved in June 2024 ahead of our second half 24 forecast.

Patrick Brindle: Given its history, North American Lithium may be the least understood asset in the industry. It's the largest active lithium operation in North America with arguably the best location among all Canadian spodgaming projects. Significant capital has been deployed at NAL over the past 15 years, and we are operating today with an improving cost profile thanks to management's tremendous efforts.

Speaker Change: Given its history, North American lithium may be the least understood asset in the industry. It's the largest active lithium operation in North America, with arguably the best location among all Canadian spodumene projects.

Patrick Brindle: It's the largest active lithium operation in North America, with arguably the best location among all Canadian spodumene projects. Significant capital has been deployed at NAL over the past 15 years, and we are operating today with an improving cost profile thanks to management's tremendous efforts. So, after two years of very hard work, I'd like to extend a special congratulations for achieving the ramp-up milestone to Siona President Sylvain Collard and his team, including Sal, Philippe, Sebastian, Lynn, Jean-Luc, Bernard, and Patrick, and many others who have played a role in getting us to this point. I'd also like to thank James Brown for his service as Siona Mining's interim CEO during the past year and to welcome Lucas Dow as Siona's Managing Director and CEO.

Speaker Change: Significant capital has been deployed at NAL over the past 15 years and we are operating today with an improving cost profile thanks to management's tremendous efforts.

Patrick Brindle: So, after two years of very hard work, I'd like to extend the special congratulations for achieving the ramp-up milestone to Sion of President Sylvain Colard and his team, including Sal, Philippe, Sebastien, Lin, Jean-Luc, Bernard, and Patrick, and many others who played a role in getting us to this point.

Siona President: So, after two years of very hard work, I'd like to extend a special congratulations for achieving the ramp-up milestone to Siona President

Sylvain Collard: Sylvain Collard

Speaker Change: and his team including Sal, Philippe, Sebastien.

Speaker Change: ln jean lu beard and patrick and many others who played a role in getting us to this point

Patrick Brindle: I'd also like to thank James Brown for his service as Sion of Mining's interim CEO during the past year and to welcome Lucas Dao and his role as Sion as Managing Director and CEO. We look forward to continuing our strong partnership and demonstrating the full potential of NAL over time. 13. Moving to slide 12, NAL increased production quarter on quarter by 23% to 49,700 tons of Spodium Inconsent Rate. Lithium recovery and NIL utilization achieved new quarterly highs of 68% and 83% respectively. With ramp-up effectively completed, we expect continued steady-state production levels for the remainder of the year, with incremental improvement to quarterly utilization rates.

Speaker Change: I'd also like to thank James Brown for his service as Siona Mining's interim CEO during the past year, and to welcome Lucas Dow and his role as Siona's Managing Director and CEO . We look forward to continuing our strong partnership and demonstrating the full potential of NAL over time.

Patrick Brindle: We look forward to continuing our strong partnership and demonstrating the full potential of NAL over time. Moving to slide 12, NAL increased production quarter-on-quarter by 23 percent to 49,700 tons of spodumene concentrate. Lithium recovery and mill utilization achieved new quarterly highs of 68% and 83%, respectively. With the ramp-up effectively completed, we expect continued steady state production levels for the remainder of the year, with incremental improvement to the quarterly utilization rate. NAL's drill program also returned additional positive results in the quarter, with assays identifying multiple new high-grade lithium zones beyond the current ultimate pitch shell. Management will use these data and focus on the potential for a significant upgrade to NAL's mineral resources estimate.

Speaker Change: Moving to slide 12, NAL increased production quarter-on-quarter by 23% to 49,700 tons of spodumene concentrate.

Speaker Change: lithium recovery and mill utilization achieved new quarterly highs of sixty-eight percent and eighty-three percent respectively with ramp-up effectively completed we expect continued steady state production levels for the remainder of the year with incremental improvement to quarterly utilization rates

Patrick Brindle: NAL's drill program also returned additional positive results in the quarter, with assays identifying multiple new high-grade lithium zones beyond the current ultimate pitch shell. Management will use these data and focus on the potential for a significant upgrade to NAL's mineral resource's estimate.

Speaker Change: lds drill program also returned additional positive results in the quarter with assays identifying multiple new high-grade lithi zones beyond the current ultimate titchshell

Speaker Change: management will use these data and focus on the potential for a significant upgrade to nl's mineral resources estimate

Patrick Brindle: Turning to slide 13 for discussion on our commercial strategy and shipping plans. The forward price curves on this slide for CME lithium hydroxide and GFX lithium carbonate have been in contango for most of 2024, and this trend appears to continue into 2025. Starting earlier this year, we began working with a trading partner to capitalize on this situation. We've structured spot sales beginning in Q2 of this year so that we can mitigate downside price exposure and avoid the M-plus-1 settlement pricing in a falling price environment, which had negative consequences for us on shipments we made in 2023.

Patrick Brindle: Turning to slide 13 for discussion on our commercial strategy and shipping plan, the forward price curves on this slide for CME Lithium Hydroxide and GFEX Lithium Carbonate have been in contango for most of 2024, and this trend appears to continue into 2025. Starting earlier this year, we began working with a trading partner to capitalize on this situation. We structured spot sales beginning in Q2 of this year so that we can mitigate downside price exposure and avoid M plus one settlement pricing in a falling price environment, which had negative consequences for us on shipments we made in 2023.

Speaker Change: Turning to slide 13 for a discussion on our commercial strategy and shipping plans.

Speaker Change: The forward price curves on this slide for CME Lithium Hydroxide and GFX Lithium Carbonate have been in contango for most of 2024, and this trend appears to continue into 2025.

Speaker Change: starting earlier this year we began working with a trading partner to capitalize on this situation

Speaker Change: We've structured spot sales beginning in Q2 of this year so that we can mitigate downside price exposure and avoid the M plus one settlement pricing in a falling price environment, which had negative consequences for us on shipments we made in 2023.

Patrick Brindle: We've noted that most of our 2024 shipments will be backloaded to the second half of this year. Our target is to ship 96,500 tons from July through December. NAL is expected to produce at full run rate for the rest of this calendar year, which supports our sales target. Also, to help reduce our cost of sales, we are planning to make fewer shipments going forward with larger cargo volumes per shipment. We're working in partnership with our Sionica Beck joint venture to co-ship cargo sold to Piedmont with cargo sold to third parties. Depending on the size of each shipment, we estimate that this may save us as much as $60 per ton on a CIF basis.

Patrick Brindle: We've noted that most of our 2024 shipments will be backloaded into the second half of this year. Our target is to ship 96,500 tons from July through December. NAL is expected to produce at full run rate for the rest of this calendar year, which supports our sales target. Also, to help reduce our cost of sales, we are planning to make fewer shipments going forward with larger cargo volumes per shipment. We're working in partnership with our Siona Quebec joint venture to co-ship cargo sold to Piedmont with cargo sold to third parties. Depending on the size of each shipment, we estimate that this may save us as much as $60 per ton on a CIF basis.

Speaker Change: We've noted that most of our 2024 shipments will be backloaded to the second half of this year. Our target is to ship 96,500 tons from July through December .

Speaker Change: NAL is expected to produce at full run rate for the rest of this calendar year, which supports our sales target.

Speaker Change: Also, to help reduce our cost of sales, we are planning to make fewer shipments going forward with larger cargo volumes per shipment. We're working in partnership with our Siona-Quebec joint venture to co-ship cargo sold to Piedmont with cargo sold to third parties.

Speaker Change: Depending on the size of each shipment we estimate that this may save us as much as $60 per ton on a CIF basis.

Patrick Brindle: Moving ahead to Ghana. In Ghana, the application to ratify the Awuja mining lease has been submitted to the Ghanaian parliament. We're continuing to wait on the outcome of that process, which we expect will be positive in due course. However, that timeline is now subject to the country's legislative processes, which are outside of our control.

Patrick Brindle: Moving ahead to Ghana. In Ghana, the application to ratify the William-mining lease has been submitted to the Ghanaian Parliament. We're continuing to wait on the outcome of that process, which we expect will be positive in due course. However, that timeline is now subject to the country's legislative processes, which are outside of our control. Meanwhile, as Keith mentioned, we have mandated a financial advisor as part of a funding strategy to raise our share of the development capital for a WUIA on a non-dilutive basis to Piedmont shareholders. Our general strategy is to mirror the efforts made by Atlantic Lithium to offer long-term off-take in exchange for funding to support our capital contribution.

Speaker Change: Moving ahead to Ghana. In Ghana, the application to ratify the Awuja mining lease has been submitted to the Ghanaian Parliament.

Speaker Change: We're continuing to wait on the outcome of that process, which we expect will be positive in due course. However, that timeline is now subject to the country's legislative processes, which are outside of our control.

Patrick Brindle: Meanwhile, as Keith mentioned, we have mandated a financial advisor as part of a funding strategy to raise our share of the development capital for AWUYA on a non-dilutive basis to Piedmont shareholders. Our general strategy is to mirror the efforts made by Atlantic Lithium to offer long-term offtake in exchange for funding to support our capital contribution. Our process is going well, with initial outreach calls completed, and we will continue with these efforts

Keith Phillips: Meanwhile, as Keith mentioned, we have mandated a financial advisor as part of a funding strategy to raise our share of the development capital for AWUYA on a non-dilutive basis to Piedmont shareholders.

Keith Phillips: Our general strategy is to mirror the efforts made by Atlantic Lithium to offer long-term offtake in exchange for funding to support our capital contribution.

Patrick Brindle: Our process is going well with initial outreach calls completed, and we will continue with these efforts.

Speaker Change: Our process is going well with initial outreach calls completed, and we will continue with these efforts.

Patrick Brindle: Finally and sadly, on July 9th, 2024, Atlantic Lithium reported a fatality at the WUIA project site. Following the accident, the Minerals Commission of Ghana conducted an investigation, and since that time, Atlantic Lithium has resumed operations in accordance with the Commission's recommendations. This has been a difficult time for our partner, and we send our deepest condolences to their teammates' family and friends.

Patrick Brindle: Finally, and sadly, on July 9th, 2024, Atlantic Lithium reported a fatality at the Awuya Project site. Following the accident, the Minerals Commission of Ghana conducted an investigation, and since that time, Atlantic Lithium has resumed operations in accordance with the Commission's recommendations.

Keith Phillips: Finally, and sadly, on July 9th, 2024, Atlantic Lithium reported a fatality at the AWUYA project site.

Speaker Change: Following the accident, the Minerals Commission of Ghana conducted an investigation, and since that time, Atlantic Lithium has resumed operations in accordance with the Commission's recommendations.

Patrick Brindle: This has been a difficult time for our partner, and we send our deepest condolences to their teammates, family, and friends. Lastly, in North Carolina, the second quarter receipt of our state mining permit marked a significant milestone for Carolina Lithium, which allows us to renew possible strategic conversations on the project. But as Keith noted at the start of the call, the development timeline for Carolina is dependent upon appropriately favorable market conditions, which don't exist at the moment.

Speaker Change: This has been a difficult time for our partner, and we send our deepest condolences to their teammates, family, and friends.

Patrick Brindle: Lastly, in North Carolina, the second quarter receipt of our state mining permit marked the significant milestone for Carolina Lithium, which allows us to renew possible strategic conversations on the project. But, as Keith noted at the top of the call, the development timeline for Carolina is dependent upon appropriately favorable market conditions, which don't exist at the moment. We have been in a reduced spend posture at Carolina for a number of months, and will continue to maintain this position in the current market. During this time, we plan to focus on advancement of our remaining permits and approvals, work on phase development planning, and engage in strategic partnering conversations with interested parties.

Speaker Change: Lastly, in North Carolina, the second quarter receipt of our state mining permit marked a significant milestone for Carolina Lithium, which allows us to renew possible strategic conversations on the project.

Keith Phillips: But, as Keith noted at the top of the call, the development timeline for Carolina is dependent upon appropriately favorable market conditions, which don't exist at the moment.

Patrick Brindle: We have been in a reduced spend posture at Carolina for a number of months and will continue to maintain this position in the current market. During this time, we plan to focus on the advancement of our remaining permits and approvals, work on phased development planning, and engage in strategic partnering conversations with interested parties. That concludes our Commercial and Projects update. With that, I'll turn it back to Keith for an update on the market and our funding strategies. Thank you, Patrick. I'd like to

Keith Phillips: We have been in a reduced spend posture at Carolina for a number of months and will continue to maintain this position in the current market.

Keith Phillips: During this time, we plan to focus on advancement of our remaining permits and approvals, work on phased development planning, and engage in strategic partnering conversations with interested parties.

Keith Phillips: That concludes our commercial and projects update. With that, I'll turn it back to Keith for an update on the market and our funding strategies.

Keith Phillips: Thank you, Patrick.

Keith Phillips: Thank you, Patrick. I'd like to conclude our presentation with some thoughts about the market. At this point, we are all aware that lithium prices are depressed. However, given the historic cyclicality of the industry, we believe the current market dynamics are setting the stage for significant opportunities in the mid and long term. Prices started the year low, began rebounding after the return from the Chinese New Year, and then retrenched. Those who have followed lithium for any period of time will tell you that the market is cyclical.

Keith Phillips: I'd like to conclude our presentation with some thoughts about the market. At this point, we are all aware that lithium prices are depressed. However, given the historic cyclicality of the industry, we believe the current market dynamics are setting the stage for significant opportunity in the mid and long term. Prices started the year low, began rebounding after the return from the Chinese New Year, and then retrenched. Those who have followed lithium for any period of time will tell you that the market is cyclical. It has been that way for the last decade, and we expect cyclicality to endure, as the market continues to grow and mature.

Keith Phillips: Prices started the year low, began rebounding after the return from the Chinese New Year, and then retrenched. Those who have followed lithium for any period of time will tell you that the market is cyclical. It has been that way for the last decade, and we expect cyclicality to endure as the market continues to grow and mature.

Keith Phillips: It has been that way for the last decade, and we expect cyclicality to endure as the market continues to grow and mature. However, high prices were the cure for high prices in 2022 and 2023, with new supply entering the market. As a result, prices are currently well below reinvestment economics, which has caused a raft of disruptions across the project development timeline.

Keith Phillips: High prices were the cure for high prices in 2022 and 2023, with new supply entering the market. As a result, prices are currently well below reinvestment economics, which is caused by a raft of disruptions across the project development timeline. Just in the last week, we've heard from two major producers that are slowing down their spend on growth projects to conserve cash. However, the key drivers of the energy transition remain intact. The global electrification industry continues to experience considerable growth for a maturity market. Lithium demand is growing significantly faster than other battery metals, such as copper and nickel.

Keith Phillips: High prices were the cure for high prices in 2022 and 2023, with new supply entering the market. As a result, prices are currently well below reinvestment economics.

Keith Phillips: Just in the last week, we've heard from two major producers that are slowing down their spend on growth projects to conserve cash. However, the key drivers of the energy transition remain intact. The global electrification industry continues to experience considerable growth for a maturing market. Lithium demand is growing significantly faster than other battery metals, such as copper and nickel, and the regionalization of battery supply chains is progressing. Next slide.

Speaker Change: which has caused a raft of disruptions across the project development timeline. Just in the last week, we've heard from two major producers that are slowing down their spend on growth projects to conserve cash.

Speaker Change: However, the key drivers of the energy transition remain intact. The global electrification industry continues to experience considerable growth.

Keith Phillips: for a maturing market.

Keith Phillips: Lithium demand is growing significantly faster than other battery metals, such as copper and nickel, and the regionalization of battery supply change is progressing. Next slide.

Keith Phillips: And the regionalization of battery supply change is progressing. Next slide.

Keith Phillips: I've said this before, but the report of the lithium industry's demise has been greatly exaggerated. EV sales continue to rise across the globe. 7.1 million EVs were sold globally in the first half of 2024, reaching an all-time high in the second quarter. The US EV market also achieved records in Q2, with year-over-year growth of 11% and record high volumes. Total EV sales were also higher than Q1 sales by 23%, exceeding industry expectations. And battery sizes are growing, with pack sizes forecasted to nearly double by 2040 as consumers demand longer ranges and larger vehicles. EVs are becoming more affordable.

Keith Phillips: I've said this before, but the report of the lithium industry's demise has been greatly exaggerated. EV sales continue to rise across the globe. 7.1 million EVs were sold globally in the first half of 2024, reaching an all-time high in the second quarter. The US EV market also achieved records in Q2, with year-over-year growth of 11% and record high volume. And battery sizes are growing, with pack sizes forecasted to nearly double by 2040 as consumers demand longer ranges and larger vehicles.

Speaker Change: I've said this before, but the report of the lithium industry's demise has been greatly exaggerated.

Keith Phillips: EV sales continue to rise across the globe. 7.1 million EVs were sold globally in the first half of 2024, reaching an all-time high in the second quarter. The U.S. EV market also achieved records in Q2, with year-over-year growth of 11% and record-high volumes.

Keith Phillips: total e sales were also higher than q one sales by twenty-three percent of exceeding industry expectations and battery sizes are growing with pack sizes forecasted to nearly doubled by two thousand and forty as consumers demand longer ranges and larger vehicles

Keith Phillips: And battery sizes are growing, with pack sizes forecasted to nearly double by 2040 as consumers demand longer ranges and larger vehicles. EVs are becoming more affordable. China has led the market adoption and offers multiple options for entry-level consumers priced below comparable internal combustion engine vehicles.

Keith Phillips: China has led in market adoption and offers multiple options for entry-level consumers, price below comparable internal combustion engine vehicles. In the US, select EVs are beginning to reach price parity. And the growing competition to introduce new models should continue to add price pressure and further boost EV adoption. A host of other data is available, ranging from the growth of energy storage to the demand for lithium relative to other battery metals. But the trend is clear: lithium demand will continue to grow at an elevated rate, as will America's need for a robust supply chain to support US electrification and the future of our nation's energy security.

Speaker Change: easy becoming more affordable china has led in market adoption and offers multiple options for entry level consumers price below comparable internal combustion engine vehicles

Keith Phillips: In the U.S., select EVs are beginning to reach price parity, and the growing competition to introduce new models should continue to add price pressure and further boost EV adoption. A host of other data is available, ranging from the growth of energy storage to the demand for lithium relative to other battery metals, but the trend is clear. Lithium demand will continue to grow at an elevated rate, as will America's need for a robust supply chain to support U.S. electrification and the future of our nation's energy security.

Speaker Change: In the U.S., select EVs are beginning to reach price parity, and the growing competition to introduce new models should continue to add price pressure and further boost EV adoption.

Speaker Change: a host of other data is available ranging from the growth of energy storage to the man for lithum relisative other batterymetals but the trend is clear lifing demand will continue to grow at an elevated rate as will america's need for a robust supply chain to support u s electrificification in the future of our nation's energy security

Keith Phillips: Just a few days ago, Forbes published an article stating that the United States is approximately four times more reliant on China for critical minerals in the processing than it was on the Middle East at the peak of the nation's oil dependence. America is woefully behind in the race to build a domestic electrification supply chain, relying almost entirely on lithium imports to meet current battery demands, demands that are expected to grow by more than 35 times of the current US lithium production capacity. Today, China produces approximately 60 percent of the world's total lithium supply versus only 2 percent for the United States.

Keith Phillips: Just a few days ago, Forbes published an article stating that the United States is approximately four times more reliant on China for critical minerals in their processing than it was on the Middle East at the peak of the nation's oil dependence. America is woefully behind in the race to build a domestic electrification supply chain, relying almost entirely on lithium imports to meet current battery demands, demands that are expected to grow by more than 35 times the current U.S. lithium production capacity.

Speaker Change: Just a few days ago, Forbes published an article stating that the United States is approximately four times more reliant on China for critical minerals in their processing than it was on the Middle East at the peak of the nation's oil dependence.

Speaker Change: america is wofullybehind in the race to build a domestic electrification supply chain relying almost entirely unlithum import to meet current battery demands demands that are expected to grow by more than thirty-five times the current u s li production capacity

Keith Phillips: Today, China produces approximately 60 percent of the world's total lithium supply versus only 2 percent for the United States. The point is, the demand for lithium is here, the future potential of the industry is strong, and the need to fortify America's energy security to support the electrification revolution will only propel the growth potential of the domestic market. Whether the objective is to support American manufacturing and jobs or global decarbonization, U.S. energy independence is an important bipartisan issue for electrification. Next slide

Speaker Change: Today, China produces approximately 60% of the world's total lithium supply versus only 2% for the United States.

Keith Phillips: Point being, the demand for lithium is here, the future potential of the industry is strong, and the need to fortify America's energy security to support the electrification revolution will only propel the growth potential of the domestic market.

Speaker Change: point being demand for li is here the future potential of the industry is strong and the need to fortify america's energy security to support the electrification revolution will only propel the growth potential of the domestic market

Keith Phillips: Whether the objective is to support American manufacturing and jobs or global decarbonization, U.S. energy independence is an important bipartisan issue for electrification. Next slide.

Speaker Change: Whether the objective is to support American manufacturing and jobs or global decarbonization, U.S. energy independence is an important bipartisan issue for electrification. Next slide.

Keith Phillips: Shifting back to the current market dynamics to conclude with a few points, we all know that lithium markets have been challenging, and companies throughout the sector are positioning to navigate the down cycle. Piedmont is no different. We are laser focused on smart capital deployment and cost savings. We've achieved our annual run rate cost reduction target to date and are looking at opportunities for further savings. Significant reductions in CAPEX and investments are expected in the second half of the year compared to the first half as we complete important investments in Quebec and defer other spending where possible.

Speaker Change: shifting to the current market dynamics to conclude a few points we all know that lithium markets have been challenging and companies throughout the sector are positioning to navigate the downcycle

Keith Phillips: We are laser focused on smart capital deployment and cost savings. We've achieved our annual run rate cost reduction target to date and are looking at opportunities for further savings. Significant reductions in CapEx and investments are expected in the second half of the year compared to the first half as we complete important investments in Quebec and defer other spending where possible. We are taking the necessary steps to maintain our position and preserve the upside potential of our assets.

Speaker Change: Piedmont is no different. We are laser focused on smart capital deployment and cost savings.

Speaker Change: we've achieved our annual run rate costreduction target to date and are looking at opportunities for further savings

Speaker Change: Significant reductions in CapEx and investments are expected in the second half of the year compared to the first half as we complete important investments in Quebec and defer other spending where possible.

Keith Phillips: We are taking the necessary steps to maintain our position and preserve the upside potential of our assets. We have made smart fiscal and development decisions and are confident about our strategy for the current market. As a joint owner of the largest producing lithium operation in North America, we are positioned to capitalize on the up cycle we see coming.

Speaker Change: we are taking the necessary steps to maintain our position and preserve the upside potential of our assets we have made smart fiscal and development decisions and are confident about our strategy for the current market as a joint owner of the largest producing liftingum operation in north america we are positioned to capitalize on the upsidecycle we see coming

Keith Phillips: We have made smart fiscal and development decisions and are confident about our strategy for the current market. As a joint owner of the largest producing lithium operation in North America, we are positioned to capitalize on the up cycle we see coming. That concludes our presentation portion of the call. Thank you for your time and attention. We'll shift to Q&A.

Erin Sanders: That concludes our presentation portion of the call. Thank you for the time and attention. We'll shift to Q&A.

Speaker Change: that concludes our presentation portion of the call thank you for the time and attention we'll shift to qna

Erin Sanders: Thank you.

Operator: Thank you. The floor is now open for questions. If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 again. If you are called upon to ask your question and are listening via the loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question.

Operator: The floor is now open for questions. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star one again. If you are called upon to ask your question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question.

Speaker Change: Thank you. The floor is now open for questions. If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue.

Speaker Change: if you would like to withdraw your question seemly press star one againif you are called upon to ask your question and are listening by a oud speaker on your device please speak up your handset and thenensure that your pon is not on mutment asking your question

Operator: We do request for today's session that you please limit to one question and one follow-up. Again, press star one to join the queue.

Operator: We do request for today's session that you please limit to one question and one follow-up. Again, press star 1 to join the Q&A. And your first question comes from the line of Bill Peterson with J.P. Morgan. Please go ahead.

Speaker Change: We do request for today's session that you please limit to one question and one follow-up. Again, press star 1 to join the queue.

William Peterson: And your first question comes from the line of Bill Peterson with JP Morgan. Please go ahead. Good morning, Keith and team.

Speaker Change: And your first question comes from the line of Bill Peterson with J.P. Morgan. Please go ahead.

Bennett: Good morning, Keith and team. This is Bennett on for Bill. Given the strong 2Q production, spodumene production, and comments that NAL has now reached a steady state as of June, I wanted to gauge how much further upside can be achieved relative to 2Q production levels as we look through the back half of the year.

Bennett: This is a Bennett on the bill. Given a strong 2Q production, a Spodgamy production and comments in NAL has now reached a steady state as of June, wanted to gauge how much further upside you think can be achieved relative to 2Q production levels as we look through the back half of the year. Thanks, Bennett. I think at NAL, the target production at NAL is say 210,000 tons a year in that zip code. We're operating at that level now. So I think if you think about that, it's kind of 50 to 55,000 tons a quarter. I think that's something that should be sustainable going.

Speaker Change: good morning ke an team this is a bennett on pre bill

Keith Phillips: Given the strong 2Q production, spodumene production, and comments that NAL has now reached a steady state as of June, I wanted to gauge how much further upside do you think can be achieved relative to 2Q production levels as we look through the back half of the year?

Bill Peterson: given a the strong t que production a spoudgemy production in comments and n is now reached steady state as a june when it's a gauge how much for ther upside doyouthinkcan be achieved relative q production levels as we look through the half ofthe air

Keith Phillips: Thanks, Bennett. I think at NAL, you know, the target production at NAL is say 210,000 tons a year in that zip code. We're operating at that level now. So I think if you think about that, it's kind of 50 to 55,000 tons a quarter. I think that's something that should be sustainable going forward.

Keith Phillips: Thanks, Bennett. I think at NAL, you know, the target production at NAL is say 210,000 tons a year. And in that zip code, we're operating at that level now. So I think if you think about that, it's kind of 50 to 55,000 tons a quarter. I think that's something that should be sustainable going forward.

Speaker Change: Thanks Bennett. I think at NAL you know the target production at NAL is say 210,000 tons a year that in that zip code. We're operating at that level now so I think if you think about that is kind of 50 to 55,000 tons a quarter I think that's something that should be sustainable going forward.

Bennett: Forward.

Bennett: All right, that's helpful. And then, as we think about the cost structure with the crushed orgdom now complete, what are your expectations on, you know, further cost reductions through the back after the year at NAL as well? You know, the progress is really good there. Sionna put out their own financial numbers when you're so go. And they're accounting, obviously showing things on a cruel basis, on a ton of shipped basis, and really running inventory sort of through the system inventory from several quarters ago, but operating costs themselves, cash operating costs are improving meaningfully, improving meaningfully.

Bennett: All right, that's helpful. And then as we think about the cost structure with the crushed ore dome now complete, what are your expectations for, you know, further cost reductions through the back half of the year at NAL as well?

Speaker Change: All right, that's helpful. And then, as we think about the cost structure with the crushed ore dome now complete, what are your expectations on, you know, further cost reductions through the back half of the year at NAL as well?

Keith Phillips: You know, the progress is really good there. Cyana put out their own financial numbers a week or so ago, and their accounting was obviously showing things on an accrual basis, on a ton-shipped basis, and really running inventory sort of through the system, inventory from several quarters ago. But operating costs themselves, cash operating costs, are improving meaningfully, and I think over the course of the next, and it will continue to improve over the course of the next year to 18 months, and should be sub-$700 a ton on a cash-cost basis delivered to Quebec.

Speaker Change: You know, the progress is really good there. Cyana put out their own financial numbers a week or so ago.

Speaker Change: They're accounting, obviously showing things on an accrual basis, on a ton-shipped basis, and really running inventory sort of through the system, inventory from several quarters ago. But operating costs themselves, cash operating costs.

Bennett: And I think over the course of the next, and then we'll continue to over the course of the next year to 18 months, and should be some $700 a ton on a cash cost basis delivered to Quebec City.

Speaker Change: are approving meaningfully, improving meaningfully, and I think over the course of the next, and it will continue to over the course of the next year to 18 months, and should be sub $700 a ton on a cash cost basis delivered to Quebec City.

Bennett: Great, thanks so much. I just follow up by saying, in today's pricing environment, just the internal discussions we're having around NAL and looking at budgeting going forward. We see NAL in today's pricing environment as a cash flow breakeven or positive enterprise with obviously huge leverage to any increases. But in the past several quarters, it's been obviously in ramp-up and burning cash, and the partners have had to contribute into that. That is something we think is coming to an end.

Keith Phillips: Great. Thanks so much. Yeah, no, I just follow up by saying in today's pricing.

Sean: Great. Thanks so much, Sean.

Keith Phillips: Yeah, I just follow up by saying in today's pricing environment, just the internal discussions we're having around NAL and looking at budgeting going forward, we see NAL in today's pricing environment as a cash flow break-even or positive enterprise with obviously huge leverage on any increases, but in the past several quarters, it's obviously been on an ramp up and burning cash, and the partners have had to contribute to that. That is something we think is coming to an end.

Speaker Change: Great, thanks so much. Yeah, I just follow up by saying in today's pricing environment, just the internal discussions we're having around NAL and looking at budgeting going forward, we see NAL in today's pricing environment as a cash flow break-even or positive enterprise with obviously huge leverage to any increases.

Speaker Change: but in the past several quarters it's been obviously in ramp-up and burning cash and the partners have had to contribute into that. That is something we think is coming to an end.

Tyler DiMatteo: Your next question comes from the line of Tyler DiMateo with BTIG. Please go ahead. Yeah, hi guys, and good morning. Thanks for taking the question.

Operator: Your next question comes from the line of Tyler DiMatteo with VTIG. Please go ahead.

Speaker Change: Your next question comes from the line of Tyler DiMatteo with BTIG. Please go ahead.

Keith Phillips: Yeah, hi guys, and good morning. Thanks for taking the question. Keith, I wanted to start on the shift in the strategy here with Tennessee and moving some capacity to North Carolina. Is Tennessee completely shelled for now? And I guess the comments surrounding appropriate market levels and timing for North Carolina, I guess I'm just curious, you know, what that means and what you really think about that and the implications for the timeline there.

Tyler DiMatteo: Yeah, hi guys, and good morning. Thanks for taking the question. Keith, I wanted to start on the shift in the strategy here with Tennessee and moving some capacity to North Carolina. Is Tennessee completely shelled for now? And I guess the comments surrounding appropriate market levels and timing for North Carolina, I guess I'm just curious, you know, what that means and what you really think about that and the implications for the timeline there.

Tyler DiMatteo: Keith, I wanted to start on the the shift in the strategy here with Tennessee and moving some capacity to North Carolina. It's Tennessee completely shelved for now, and I guess the comments surrounding the appropriate market levels, surrounding the timing of North Carolina. I guess I'm just curious. What does that mean, and how do you really think about that and the implications for the timeline there? Yeah, the way to think of a Tennessee. Tennessee and Carolina were always intended to be developed in some sequence based on different permitting timelines and market conditions. There was a period where it appeared at the Tennessee is something we would prioritize first.

Tyler DiMatteo: Yeah, hi guys and good morning. Thanks for taking the question.

Tyler DiMatteo: Keith, I wanted to start on the shift in the strategy here with Tennessee.

Tyler DiMatteo: and moving some capacity to North Carolina. Is Tennessee completely shelled for now? And I guess the comments surrounding the...

Speaker Change: the appropriate market levels surrounding the timing of North Carolina. I guess I'm just curious, you know, what does that mean and how do you really think about that and the implications for the timeline there?

Keith Phillips: Yeah, the way to think about Tennessee, I mean, Tennessee and Carolina were always intended to be developed in some sequence. Based on different permitting timelines and market conditions, there was a period where it appeared that Tennessee was something we would prioritize first. That was certainly our view 18 plus months ago. Ultimately, with my permit coming through in North Carolina, and market conditions being such that neither project is going to be developed in today's market. And just fundamentally,

Keith Phillips: Yeah, the way to think about Tennessee, Tennessee and Carolina were always intended to be developed in some sequence. Based on different permitting timelines and market conditions, there was a period where it appeared that Tennessee was something we would prioritize first. That was certainly our view 18 plus months ago. Ultimately, with my permit coming through in North Carolina, and market conditions being such that neither project is going to be developed in today's market. And just fundamentally, the industry needs stronger pricing for big projects to be built. Full stop, that's across the board.

Speaker Change: the way ing of tennessee mtennessee in carolina 're always intended to be developed in some sequence

Speaker Change: Based on different permitting timelines and market conditions, there was a period where it appeared that Tennessee is something we would prioritize first. That was certainly our view 18 plus months ago. Ultimately, with the mine permit coming through in North Carolina, with market conditions being such that neither project is going to be developed in today's market.

Tyler DiMatteo: That was certainly our view 18 plus months ago. Ultimately, with my permit coming through in North Carolina, with market conditions being such that neither project is going to be developing today's market. And just fundamentally, the industry needs stronger pricing for big projects to be built. Full stop. That's across the board. It's not a Piedmont matter. You've heard it from Al Marley, you've heard it from Arcadia, and you're going to hear it from others over time. We're just not at a pricing level where big new greenfield projects can get built. It just doesn't make sense. It's not a good use of money for shareholders.

Keith Phillips: It's not a Piedmont matter. You've heard it from Albemarle. You've heard it from Arcadium. You're going to hear it from others over time.

Tyler DiMatteo: and just fundamentally

Tyler DiMatteo: The industry needs stronger pricing for big projects to be built full stop. That's across the board. It's not a Piedmont matter You've heard it from Albemarle. You've heard it from Arcadium. You're gonna hear it from from others over time

Operator: School operator today.

Keith Phillips: We're just not at a price level where big new greenfield projects can get built. That just doesn't make sense. It's not a good use of money for shareholders. So, as we thought about the development, and we think about Tennessee really as an, as an independent chemical plant, we've always been planning and permitting 60,000 tons of capacity in North Carolina. So, the opportunity to slot Tennessee in as Trane 2 in Carolina, from a longer-term perspective, was something that just makes more sense for us economically.

Operator: At this time, I would like to welcome everyone to the Q22024 Piedmont Lithium Learning School. All lines have been placed on mute to prevent any background noise.

Tyler DiMatteo: We're just not at a pricing level where big new greenfield projects can get built. That just doesn't make sense. It's not a good use of money for shareholders. So, as we thought about the development and we think about Tennessee really as an independent chemical plant.

Keith Phillips: So, as we thought about the development and we think about Tennessee really as an independent chemical plant, we've always been planning and permitting 60,000 tons of capacity at North Carolina. So the opportunity is slot Tennessee in as spring to in Carolina. The longer term perspective was something that just makes more sense for us economically. Frankly, in conversations with strategic partners, their interest was more significant at Carolina. You know, there was interest in Tennessee, but at the end of the day, the idea of having a plant in Carolina, on top of a mindset, having an integrated facility all in one location is unique in the world.

Operator: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press far, follow bit number one on your telephone keypad. If you would like to withdraw your question, press far one again. Thank you.

Tyler DiMatteo: We've always been planning and permitting 60,000 tons of capacity at North Carolina, so the opportunity to slot Tennessee in is trained to in Carolina from a longer-term perspective.

Keith Phillips: Frankly, in conversations with strategic partners, their interest was more significant in Carolina. Just, you know, there was interest in Tennessee, but at the end of the day, the idea of having a plant in Carolina on top of a mine site, having an integrated facility all in one location is unique in the world. And the fact that it's in the southeastern U. S. is exceptionally interesting, the strategic parties. So, it just made sense.

Tyler DiMatteo: was something that just makes more sense for us economically. Frankly, in conversations with strategic partners, their interest was more significant at Carolina.

Erin Sanders: I will now turn to Cole over to Erin Sanders, Senior Vice President of Corporate Communications and Investor Relations. Please go ahead.

Tyler DiMatteo: just know there was interest see at the endof theday theidea having a plant

Erin Sanders: Thank you operator and good morning everyone. Welcome to Piedmont Lithium's second quarter 2024 earnings call.

Tyler DiMatteo: in carolina on top of a msite

Keith Phillips: And from a timing perspective for Carolina, we still have things to go through from a permitting and approvals perspective, but ultimately from a capital perspective, you know; it's a large capital project. We're, you know, kind of advancing toward the position where we'll put funding in place, but that's not going to happen this year in this environment. It's just not the right environment for us to walk in with funding. So, I think that, you know, we don't, we don't have a set timeline for Carolina at this stage, but I would say FID is, is very unlikely to happen in the next 24 months just because the funding process will take that long, and we're working at a measured pace for that.

Keith Phillips: And the fact that it's in the Southeast or in the US is exceptionally interesting, the strategic parties. So it just made sense. And from a tiny perspective for Carolina, we still have, you know, that things to go through from a permitting and approvals perspective. Ultimately, from a capital perspective, you know, it's a large capital project. We're, you know, we're kind of advancing toward the position where we'll put funding in place, but that's not going to happen this year in this environment. It's just not the right environment for us to walk in funding.

Tyler DiMatteo: Having an integrated facility all in one location is unique in the world, and the fact that it's in the southeastern US is exceptionally interesting the strategic parties. So, so it just made sense. And from a timing perspective for Carolina, we still have, you know,

Erin Sanders: Joining us today from Piedmont Lithium are Keith Phillips, President and Chief Executive Officer who will provide the introductory remarks. Michael White, Chief Financial Officer, will then review our financial results, followed by Patrick Brindle, Chief Operating Officer, who will offer an update on our commercial activities and projects.

Tyler DiMatteo: Things to go through from a permitting and approvals perspective, but ultimately from a capital perspective.

Tyler DiMatteo: You know, it's a large capital project.

Tyler DiMatteo: we're we're kind of advancing thetoward the position where we'll put funding in place but that's not going to happen this year in thisenvironment it's just not the right environment for us to walk in funding

Erin Sanders: Keith will then provide closing commentary before we transition to a live Q&A session. As a reminder, today's discussion will contain forward-looking statements relating to future events and expectations that are subject to various assumptions and caveats. Factors that may cause the company's actual results to differ materially from these statements are included in today's presentation, earnings release and in our SEC filings. In addition, we have included non-GAAP financial measures in this presentation. Reconciliation to the most directly comparable GAAP financial measures can be found in today's earnings release and the appendix today's slide presentation. Any reference in our discussion today to EBITDA means adjusted EBITDA. Further, references to shipments are shipments of Spodgaming Concentrate and tons are dry metric tons.

Tyler DiMatteo: So I think that we don't have a set timeline for Carolina at this stage, but I would say FID is very unlikely to happen in the next 24 months, just because the funding process will take that long and we're working on a measured pace for that. Okay, great. Thanks. That's very helpful.

Tyler DiMatteo: So I think that, you know, we don't have a set timeline for Carolina at this stage, but I would say FID is very unlikely to happen in the next, say, 24 months, just because the funding process will take that long and we're working on a measured pace for that.

Keith Phillips: Okay, great. Thanks. That's very helpful. And then, kind of just shifting over to Ghana here, I guess, you know, how do you think about the offtake timeline there for that, maybe what you're looking for, kind of what you're targeting, and kind of how you're balancing that project versus North Carolina? Now, I know you kind of pointed to lower lithium prices here, kind of making it tough for the industry across the board. Just kind of curious how you're balancing the two of the projects there and then the offtake for Ghana.

Tyler DiMatteo: Okay, great. Thanks. That's very helpful. And then, kind of just shifting over to Ghana here, I guess, you know, how do you think about the offtake timeline there for that, maybe what you're looking for, kind of what you're targeting, and kind of how you're balancing that project versus North Carolina? Now, I know you kind of pointed to lower lithium prices here, kind of making it tough for the industry across the board. Just kind of curious how you're balancing the two of the projects there and then the offtake for Ghana.

Tyler DiMatteo: And then kind of just shifting over to Ghana here. I guess, you know, how do you think about the offtake timeline there for that, maybe what you're looking for, kind of what you're targeting and kind of how you're balancing that project versus North Carolina. Now, I know you, you know, kind of pointed to lower lithium prices here, kind of making it tough for the industry across the board. Just kind of curious how you're balancing the two of the projects there, and then the offtake for Ghana. Yeah, good question. I mean, so listen, the, the Lawyer Project in Ghana is a great project.

Speaker Change: okay great thanks that that's very helpful and then kind of just shifting over to ghana here i guess

Speaker Change: You know, how do you think about the offtake timeline there for that, maybe what you're looking for, kind of what you're targeting, and kind of how you're balancing that project versus North Carolina. Now, I know you, you know, kind of pointed to lower lithium prices here, kind of making it tough for the industry across the board. Just kind of curious how you're balancing the two of the projects there and then the offtake for Ghana.

Keith Phillips: Yeah, good question. I mean, listen, the AWOIA project in Ghana is a great project. It's a lower capex, higher return on invested capital kind of project. Having said that, the response means sub $1,000.

Erin Sanders: Please note that copies of our earnings release and presentation as well as a replay of this call will be available on our website, PiedmontLithium.com.

Speaker Change: Yeah, good question. I mean, so listen, the AWOIA project in Ghana is a great project. It's a lower capex, higher return on invested capital kind of project. Having said that, SPODS means sub $1,000. The returns aren't sufficient for either partner to accelerate development there, so it'll happen, but it'll need a stronger environment, which I view as inevitable.

Keith Phillips: It's, it's a lower cap-backs higher return on investor capital kind of project. Having said that, this project means some $1,000. The returns aren't sufficient for either partner to accelerate development there. So it'll happen, but it'll need a stronger environment, which I view is inevitable. And it's just a matter of time. So I think the most important news, I hear constantly that people are worried that we have a funding requirement at a lawyer right around the corner. That is not true. That project is not getting developed on that timeline. We still meet, we're still finishing off parliamentary ratifications and permanently work, a lot of engineering work.

Keith Phillips: The returns aren't sufficient for either partner to accelerate development there, so it'll happen, but it'll need a stronger environment, which I view as inevitable. It's just a matter of time. So I think the most important news. I hear constantly that people are worried that we have a funding requirement at AWOIA right around the corner. That is not true.

Erin Sanders: With that, I'll turn the call over to Keith Phillips. Keith?

Keith Phillips: Thanks Aaron and thank you all for joining us today for Piedmont Lithium's second quarter 2024 earnings call.

Speaker Change: It's just a matter of time. So, I think the most important news, I hear constantly that people are worried that we have a funding requirement at Avoya right around the corner. That is not true.

Keith Phillips: As I like to do at the start of these calls, I will quickly reiterate our mission and strategy for those of you who may be new to Piedmont Lithium and our story. Piedmont is one of only two US domiciled lithium companies actively supplying the market today. Our mission is to be a leading North American supplier of lithium products to support the electrification revolution and the battery manufacturing industry. Our strategy is based on hard rock production.

Keith Phillips: That project is not getting developed on that timeline. We're still finishing off parliamentary ratifications and permitting work, and a lot of engineering work. If the markets were to roar back, it's possible that it could be in kind of the FID stage as early as a year from now. And I'd love for that to happen.

Speaker Change: the projectx is not getting developed on that timeline

Speaker Change: We still meet, we're still finishing off.

Keith Phillips: If the markets were to roll back, it's possible that could be in kind of FID stage as early as a year from now. And that, and I'd love for that to happen. This is a great project. We're confident we'll have a funding in place for it, but I think it's likely to take more time again in less markets. We're back. But the funding feedback is very positive. This is a 360,000 ton of year low cost. It's by far the best located. And many of those are large entities that have capital. They can essentially provide to us in the form of advances to help us fund our capital.

Speaker Change: parliamentary ratification, superlative work, a lot of engineering work.

Speaker Change: ifthe markets were to roared back it possible that could be in kind of fidd stage as early as a year from now

Keith Phillips: It's a great project. We're confident we'll have our funding in place for it, but I think it's likely to take more time, again, unless markets roar back. But the funding feedback is very positive. This is a 360,000 ton a year, low cost spodumene operation a mile from the Atlantic Ocean. It's by far the best-located lithium project in all of Africa. The parties who need spodumene, you can kind of guess who those are around the world, are all really interested in it.

Speaker Change: And I'd love for that to happen, because it's a great project. We're confident we'll have our funding in place for it, but I think it's likely to take more time, again, unless markets roar back.

Keith Phillips: We believe Spodgaming Concentrate represents the lowest risk and most commercially scalable raw material resource. Our goal is to play a key role in US efforts to reduce our country's reliance on foreign nations for critical materials which is crucial to the future of our nation's energy security.

Speaker Change: But the funding feedback is very positive. This is a 360,000 ton a year, low cost, quadrimen operation, a mile from the Atlantic Ocean. It's by far the best located.

Keith Phillips: Turning to the key themes for the second quarter, and today you'll hear about North American lithium achieving steady state operations and other positive things happening in Quebec. We'll also discuss our decision to consolidate our US lithium hydroxide development strategy. We'll talk about our refined commercial strategy for the second half to improve pricing realizations while meeting shipment guidance. Republicans, a progress toward our $10 million 2024 cost reduction plan. And finally, an update on our theme from the first quarter, a year of two halves, with a significant curtailment in capital investment spending in the second half, and also a significant increase in Spodgy Meat Shipments in the second half of this year.

Speaker Change: project in all of Africa. The parties who need spodumene, you can kind of guess who those are around the world, are all really interested in it.

Keith Phillips: And many of those are large entities that have capital they can essentially provide to us in the form of advances to help us fund our capital. So my expectation is that capital and development there will be deferred, but that when it is developed, we will secure all of our funding for that project from offtake parties on a non-dilutive basis.

Speaker Change: and many of those are large entities that have capital they can essentially provide to us

Tyler DiMatteo: So I'm, my expectation is capital and develop there will be deferred, but that when it is developed, we will secure all of our funding for that project from optic parties on a non diluted basis. Okay, great. Thanks for the color. They're key to really appreciate it. I'll turn it back to the queue.

Speaker Change: in

Speaker Change: in the form of advances to help us fund our capital. So my expectation is capital and development there will be deferred, but that when it is developed, we will secure all of our funding for that project from offtake parties on a non-dilutive basis.

Operator: Okay, great. Thanks for the call there, Keith. I really appreciate it. I'll turn it back on the queue.

Tyler DiMatteo: Okay, great. Thanks for the call there, Keith. I really appreciate it. I'll turn it back on the queue.

Speaker Change: Okay, great. Thanks for the call there, Keith. Really appreciate it. I'll turn it back to the queue. Thanks.

Tyler DiMatteo: Thanks.

Gregory Jones: Thank you.

Operator: Thank you. Your next question comes from the line of Greg Jones with BMO Capital Markets.

Gregory Jones: Your next question comes from the line of Greg Jones with BMO Capital Markets. Good morning, Keith and team. I wanted to follow up on one of the prior questions around the Carolina timeline.

Keith Phillips: Those are the key points we'll cover, and the through line deal here throughout this call is strategic perseverance. Like many others in the Lithium market, our focus in 2024 has been to position Piedmont to whether the prevailing pricing down cycle preserve our assets and fortify the upside potential of our global portfolio. Our second half 2024 plans are designed for two things, smart capital deployment and cost savings so that when the lithium demand crunch hits and the market turns as we believe it will, Piedmont will be in a ready position to leverage our business.

Speaker Change: Thank you. Your next question comes from the line of Greg Jones with BMO Capital Markets.

Gregory Jones: Good morning, Keith and team. I wanted to follow up on one of the prior questions around the Carolina timeline. Can you provide some guidance or estimation on when you think there might be, you know, an updated feasibility study that looks at this larger-scale project or some details that might come out from the feed study at Tennessee that could be used to help guide capital and other parameters around the project?

Keith Phillips: Good morning, Keith and team. I wanted to follow up on one of the prior questions around the Carolina timeline. Can you provide some guidance or estimation on when you think there might be, you know, an updated feasibility study that looks at this larger-scale project or some details that might come out from the feed study at Tennessee that could be used to help guide capital and other parameters around the project?

Greg Jones: good morning keis and team i wanted to follow up on one of the prior questions around the carolin a timeline

Gregory Jones: Can you provide some guidance or estimation on when you think there might be an updated feasibility study that looks at this larger scale project or some details that might come out from the 15 study at Tennessee that could be used to help guide capital and other parameters around the project. Thank you very much. Thank you, Greg. Yeah, good question.

Greg Jones: Can you provide some guidance or estimation on when you think there might be an updated feasibility study that looks at this larger scale project or some details that might come out from the FEED study at Tennessee that could be used to help guide capital and other parameters around the project?

Keith Phillips: Thanks, Greg. Yeah, a good question. We don't have any current plans to publish and update the study. At some point, you know, we'll do that. We're constantly sort of updating our thoughts on that, and we're currently doing some optimization studies. So, as an example, is 30,000 tons the right size for that plan, or is something bigger or smaller for each train? You know, we think it might make sense to make the trains somewhat smaller, say, 25,000 tons. It turns out there are real capital efficiencies there. On the mine side, 242,000 tons a year is the right throughput or something a little different, better for a variety of different reasons.

Keith Phillips: Thanks, Greg. Yeah, a good question. We don't have any current plans to publish and update a study. But at some point, we'll do that. We're constantly sort of updating our thoughts on that, and we're currently doing some optimization studies. So, as an example, is 30,000 tons the right size for that plan, or is something bigger or smaller for each train? We think it might make sense to make the trains somewhat smaller, say 25,000 tons. There's really, it turns out, real capital efficiencies there. On the mine side, 242,000 tons a year. The right throughput or something a little different, better for a variety of different reasons.

Gregory Jones: We don't have any current plans to publish an updated study. At some point, you know, we'll do that where we constantly sort of updating our thoughts on that, and we're currently doing some optimization studies. So, as an example, is 30,000 times the right size for that plan, or is something bigger or smaller for each train? You know, we think it might make sense to make the trains somewhat smaller, say 25,000 tons. There's really the it turns out there's real capital efficiencies there. On the mind side side is 242,000 tons a year, the right throughput or something a little different better for a variety of different reasons.

Keith Phillips: So let's look at our key focus areas by project North American Lithium already the largest lithium operation in North America continues to demonstrate this potential as an excellent asset in the second quarter NAL again broke production records while reaching new highs and lithium recovery and mill utilization rates. The focus in the second half of the year is to continue steady state operations and drive reductions in unit operating costs. The Sion and management team is also planning an update to NAL's mineral resource update following additional high grade drill results in the second quarter.

Greg Jones: Thanks, Greg. Yeah, good question. We don't have any current plans to publish an updated study. At some point, you know, we'll do that. We're constantly sort of updating our thoughts on that, and we're currently doing some optimization studies. So, as an example, is 30,000 tons the right size for that plan, or is something bigger or smaller for each train?

Speaker Change: we think it might cess to make make the training somewhat smaller sayage twenty five thousand tons there's really it turns out there's a real capital efficiencies there

Speaker Change: on the mindside ssideite is two hundred and forty two thousand tons a year the right through put or something a little different better for a vietyofdifferent reason there's a lot of work being done there it 'll be is kind of continuous and then we're moving it forward i'd say

Keith Phillips: Obviously, as mineral resources and reserves grow, the potential for further growth in annual production at NAL will be evaluated. NAL has successfully cleared the gates of both operational restart and ramp up and is positioned to capitalize on any future lithium price recovery.

Keith Phillips: There's a lot of work being done there, and it's kind of continuous, and we're moving it forward, I'd say, on a discipline basis. We're not burning too many engineering dollars. We do keep updated models that we share with potential strategic investors and potential funding sources, but we don't have any current plans to publish an updated study. I think it's fair to say we published the Carolina DFS in December 2021, and it's fair to say capital has increased across the world and certainly across the lithium industry since then. I think people like you, I think, have that baked into their models. I haven't taken a close look at it recently.

Gregory Jones: There's a lot of work being done there. It'll, it'll be, it's kind of continuous, and then we're moving it forward, I'd say on a discipline basis, just, you know, we're not kind of burning too many engineering dollars. We do keep updated models that we share with potential strategic investors and potential funding sources.

Keith Phillips: There's a lot of work being done there. It'll be, it's kind of continuous, and we're moving it forward. I'd say, on a discipline basis, just, you know, we're not kind of burning too many engineering dollars. We do keep updated models that we share with potential strategic investors and potential funding sources, but we don't have any current plans to publish an updated study. I think it's fair to say we published the Carolina DFS in December 2021.

Speaker Change: on a discipline basis, just, you know, we're not kind of burning too many engineering dollars. We do keep updated models that we share with potential strategic investors and potential funding sources.

Keith Phillips: For our Roya joint venture in Ghana, we have mandated the financial advisor to help secure our share of the project's construction capital. That process is kicked off and the early feedback from potential offtake partners is very encouraging.

Gregory Jones: But we don't have any current plans to publish an updated study. I think it's fair to say we published the Carolina DFS in December 2021. It's fair to say capital has increased across the world and certainly across the lithium industry since then. I think people like you. I think have that baked into their models.

Speaker Change: But we don't have any current plans to publish an updated study. I think it's fair to say we published the Carolina DFS in December 2021. It's fair to say capital has increased across the world. It's really across the lithium industry since then. I think people like you, I think, have that baked into their models. I haven't taken a close look recently at.

Keith Phillips: It's fair to say capital has increased across the world and certainly across the lithium industry since then. I think people like you, I think, have that baked into their models. I haven't taken a close look recently at where those are relative to where things may end up, but we'll see.

Keith Phillips: With approvals at a Roya ongoing, we expect advances to Atlantic lithium to reduce in the near term and since the offtake from a Roya will no longer be required as feedstock for Tennessee lithium and offtake partner funding opportunity has been created for Piedmont.

Gregory Jones: I haven't taken a close look recently at where those are relative to where things may up and may end up. We'll see.

Speaker Change: where those are relative to where things may up and may end up we'll see.

Keith Phillips: In the United States, we've made a strategic decision given market conditions and the receipt of the Carolina mining permit in the second quarter, we've made the decision to consolidate Tennessee lithium's planned lithium hydroxide capacity into a second train in North Carolina. Our plan is to construct the trains and a phased approach.

Gregory Jones: Thanks and one follow-up question, please. When you think about the larger scale project at Carolina, how are you thinking about speed stock sourcing requirements? So you've got obviously the portion from integrated mine that would satisfy a portion of the production life. But under that larger scenario, where would you expect a source speed stock from? Yeah, no good question. Listen, I think the good news is there are a lot of spots and resources available for an American conversion project. You think about phase one in North Carolina is integrated, obviously with their own mind. That'll be developed probably a couple of years behind Ghana.

Gregory Jones: Thanks. And one follow-up question, please. When you think about the larger-scale project at Carolina, how are you thinking about feedstock sourcing requirements? So you've got obviously the portion from the integrated mine that would satisfy a portion of the production life. But under that larger scenario, where would you expect to source feedstock from?

Speaker Change: When you think about the larger scale project at Carolina, how are you thinking about feedstock sourcing requirements? So you've got obviously the portion from the integrated mine that would satisfy a portion of the production life.

Keith Phillips: We believe developing Carolina lithium as a multi phased larger operation is the right move for Piedmont and our shareholders to deploy capital and technical resources more efficiently. The bulk of the front end engineering work completed for the Tennessee facility is directly transferable to Carolina. They were always planned as twin facilities and the 60,000 ton per year air permit that we continue to pursue with North Carolina's division of air quality would support the increased tonnage. With the receipt of the Carolina state mining permit, we've taken the opportunity to reengage in active discussions with potential strategic partners.

Speaker Change: But under that larger scenario, where would you expect to source feedstock from?

Keith Phillips: Yeah, no, good question. Listen, I think the good news is there are a lot of spodumene sources available for an American conversion project. So you think about phase one in North Carolina is integrated, obviously, with their own mine. That'll be developed probably a couple of years behind Ghana, if you think about it that way, two or three years behind by the time it's up and running. Train two would be two or three or four years behind that.

Speaker Change: Yeah, no, good question. Listen, I think the good news is there are a lot of spodumene sources available for an American conversion project. So you think about phase one in North Carolina is integrated obviously with their own mine.

Gregory Jones: If you think about it that way, two or three years behind by the time it's up and running. Train two would be two or three or four years behind that. So if we sit here at all the Ghana offtake with the third party for five or six years, that material would free up again in time for Train Two. So that's an opportunity. But there's material coming from Quebec. There's material coming from Brazil, this material coming from Australia, even that come into the US, and the benefits of coming into the US in terms of avoiding. You know, VAT and China just feeding the massive demand growth that is in the US are such that, you know, we don't really see any risk of being unable to secure Spodgaming on a longer term basis.

Speaker Change: That'll be developed probably a couple years behind Ghana, if you think about it that way, two or three years behind by the time it's up and running.

Keith Phillips: So if we secured all the Ghana offtake with a third party for five or six years, that material would free up again in time for train two. So that's an opportunity. But there's material coming from Quebec, there's material coming from Brazil, there's material coming from Australia, even that comes into the US. And the benefits of coming into the US in terms of avoiding VAT in China, just feeding the massive demand growth that is in the US are such that we don't really see any risk of being unable to secure spodumene on a longer-term basis. And that would be something we would work on as part of that development.

Keith Phillips: Train 2 would be 2 or 3 or 4 years behind that.

Keith Phillips: So, if we secured all the Ghana offtake with a third party for five or six years, that material would free up again in time for train two. So, that's an opportunity.

Keith Phillips: As you might have managed in the idea of an integrated spodge of me the hydroxide project in the southeast of the United States holds great appeal for a number of important players in the supply chain. In the near term, our key areas of focus will be funding, permitting and approvals. However, we are progressing our development of Carolina on a conservative timeline with an eye on the dynamic market conditions.

Speaker Change: but there's material coming from queac there's material coming from azil ' material come from austroia even that come the u s and the benefits of coming into the uus in terms of avoiding vatt in china just feeding the massive demand growth that is in the u s

Keith Phillips: Ultimately higher lithium prices will be required to support the development of lithium projects hours and others that will be necessary to meet projected demand, and I'll speak more about our thoughts on supply, demand, and the market shortly.

Keith Phillips: are such that, you know, we don't really see any risk of being unable to secure spodumene on a longer-term basis, and that would be something we would work on as part of that development for TRAIN-2.

Gregory Jones: And that will be something we've worked on as part of that development for train two.

Gregory Jones: Great, thanks for trying to the key.

Gregory Jones: Great, thanks. I'll return it to the queue.

Operator: Great, thanks. I'll return it to the queue.

Gregory Jones: Thanks, Greg.

Speaker Change: thanks return to the queuethanks great

Matthew P.: Your next question comes from the line of Matthew P.

Michael White: Now, Michael will provide a detailed discussion of our second quarter of financial performance. Michael. Thanks, Keith.

Operator: Your next question comes from the line of Matthew Key with B. Reilly Security.

Matthew P.: would be Riley Securities. Hey T some team. Thank you for taking my question. You mentioned in the slide deck that you're potentially looking at some opportunities to monetize non-core assets. Did you maybe provide some additional detail on that? And what exactly would you be kind of considering in terms of non-core and selling? Thank you. Yeah, good question. Certainly, our core project, our core. So, you know, we have we continue to own shares in the Atlantic Lithium, for instance, which is a key partner. But this shareholding we have isn't core. We have some land we own in the North Carolina vicinity that isn't core to our project as is currently designed.

Speaker Change: your next question comes from the line of matthew key would be riilly securities

Keith Phillips: Hey Keith and team, thank you for taking my question. You mentioned in the slide deck that you're potentially looking at some opportunities to monetize non-core assets. Could you maybe provide some additional detail on that and what exactly would you be considering in terms of non-core and selling? Thank you.

Matthew Key: Hey Keith and team, thank you for taking my question. You mentioned in the slide deck that you're potentially looking at some opportunities to monetize non-core assets. Could you maybe provide some additional detail on that and what exactly would you be considering in terms of non-core and selling? Thank you.

Michael White: Turning to slide six, I'd like to provide a high-level review of our second quarter results. We shipped approximately 14,000 dry metric tons for the quarter and recognized 13.2 million in revenue, resulting in a realized price of $945 per metric ton. This compares to a realized cost per metric ton of $900. Included in the realized price per ton were logistics costs, which are many times recorded as an offset to revenue depending on who bearers responsibility for shipping and a downward provisional pricing adjustment associated with shipments in prior quarters.

Keith Phillips: Hey, Keith and team. Thank you for taking my question. You mentioned in the slide deck that you're potentially looking at some opportunities to monetize non-core assets. Could you maybe provide some additional detail on that, and what exactly would you be kind of considering in terms of non-core selling? Thank you.

Keith Phillips: Yeah, good question. Certainly, our core projects; our projects are core. So, you know, we have, and we continue to own shares in Atlantic Lithium, for instance, which is a key partner, but the shareholding we have isn't core. We have some land we own in the North Carolina vicinity that isn't core to our project as it's currently designed. So there are a series of things. But they don't amount to the same quantum as what we were able to realize in the first half of the year by exiting our Cyanoblock and some of our Atlantic shares. But at the margin, you know, it makes a difference. And we'll be, we'll continue to look at those options.

Keith Phillips: Yeah, good question. Certainly, our core projects; our projects are core. So, you know, we have, and we continue to own shares in Atlantic Lithium, for instance, which is a key partner, but the shareholding we have isn't core. We have some land that we own in the North Carolina vicinity that isn't core to our project as it's currently designed. So there are a series of things. But they don't amount to the same quantum as what we were able to realize in the first half of the year by exiting our Cyanoblock and some of our Atlantic shares. But, but at the margin, you know, it makes a difference, and we'll be, we'll continue to look at those options.

Keith Phillips: Yeah, good question. Certainly our core, our projects are core, so...

Keith Phillips: We continue to own shares in Atlantic Lithium, for instance, which is a key partner, but the shareholding we have isn't core. We have some land we own in the North Carolina vicinity that isn't core to our project.

Michael White: We ended the quarter with 59 million in cash and second quarter gap net loss was 13.3 million or a loss of 69 cents per share and adjusted net loss was 12.7 million or a loss of 65 cents on an adjusted per share basis. Turning to slide seven for sources and uses of cash, our beginning and ending cash positions for the quarter were 71 million and 59 million dollars respectively. During the quarter and as part of our 2024 cost savings plan, we reduced CAPEX to a modest $3 million.

Keith Phillips: So there's a series of things they don't amount to the same quantum as we were able to realize in the first half of the year by exiting our site on a block at some of our Atlantic shares, but, but at the margin. You know, makes a difference and will be. And we'll continue to look at those options.

Keith Phillips: as is currently designed so there's a serious of things they don't amount to the same quantum as what we'were able to realize in the first half of the year by accing our say ona block at some of our atlantic shares but but that the margin you know makes a difference and we'll be ' potat to look at those options

Matthew P.: Good, thank you for that. It's clear.

Matthew Key: Got it. Thank you for that. That's clear.

Keith Phillips: Got it. Thank you for that. That's clear.

Keith Phillips: And just one follow-up for me, kind of staying on Carolina. You guys obviously received the state mind impairment recently, but could you remind me if there's anything else that needs to be done on the permit inside of things in Carolina? If I recall correctly, I think there was still some stuff related to rezoning and other things like that. Could you just remind all that stands currently? Yeah, listen, we need an integrated project, so you need the mind permit for the mining operation. We need an air permit for the chemical plant operation; we hope to secure that in the first half of next year.

Speaker Change: Got it. Thank you for that. That's clear. And just one follow-up for me. I'm kind of staying on Carolina.

Matthew Key: And just one follow-up for me, kind of staying on Carolina. You guys obviously received the state mining permit recently, but could you remind me if there's anything else that needs to be done on the permit side of things in Carolina? If I recall correctly, I think there was still some stuff related to rezoning and other things like that. Could you just remind me where all that stands currently?

Keith Phillips: And just one follow-up for me, kind of staying on Carolina. You guys obviously received the state mining permit recently, but could you remind me if there's anything else that needs to be done on the permit side of things in Carolina? If I recall correctly, I think there was still some stuff related to rezoning and other things like that. Could you just remind me where all that stands currently?

Keith Phillips: You guys obviously received the state mining permit recently, but could you remind me if there's anything else that needs to be done on the permit-in side of things in Carolina? If I recall correctly, I think there was still some stuff related to rezoning and other things like that. Could you just remind me where all that stands currently?

Michael White: We expect further reductions in CAPEX in the third and fourth quarters of 2024, which I'll discuss shortly. Within investments and affiliates was a $5 million investment in North American Lithium, which includes completion of the crushed ore dome and marks finalization of restart CAPEX for the operation.

Keith Phillips: Yeah, listen, we need an integrated project. So you need the mine permit for the mining operation. You need an air permit for the chemical plant operation. We hope to secure that in the first half of next year.

Keith Phillips: Yeah, listen, we need air, so it's an integrated project. So you need the mine permit for the mining operation. You need an air permit for the chemical plant operation.

Speaker Change: yeah listen we we need the so it integrated projects soyou need the mind permitfor the mining operation need air perit for the chemical plan operation we hope to secure thatin the first half of next year as a reminder we did apply for sixty thousand tons

Michael White: Let's move to slide eight. It's imperative that we are appropriately managing our cost during the down cycle and while we do not know how long the down cycle will last, we are committed and taking action to right sizing our cost structure in a thoughtful yet agile manner. Let's break this down into two areas. First on our last earnings call, we discuss the commencement of our 2024 cost savings plan with a target of more than $10 million in annual run rate savings associated with our operating cost structure.

Keith Phillips: We hope to secure that in the first half of next year. And as a reminder, we did apply for 60,000 tons of coverage there. So there are some other permits. And then there is the rezoning process. I mean, obviously, this is private land.

Keith Phillips: And as a reminder, we did apply for 60,000 tons of coverage there. So, and there are some other permits. And then there is the rezoning process. I mean, obviously, this is private land.

Keith Phillips: As a reminder, we did apply for 60,000 tons coverage there, so there are some other permits, and then there is the rezoning process. I mean, obviously this is private land; it's currently zoned principally residential or agricultural. We need to rezone it for industrial and mining purposes. That's a process that we'll advance at the right time, and that may be maybe in 2025, maybe later depending on how we progress with permitting and some of the engineering designs we're doing. So we want to be kind of fully transparent when we go through that process and really understand, you know, are the trains 25,000 tons or the 30, is the mine going to produce 242,000 tons or some different number, et cetera.

Keith Phillips: coverage there, so...

Keith Phillips: And there's some other permits, and then there is the rezoning process. I mean, obviously, this is private land. It's currently zoned principally.

Keith Phillips: It's currently zoned principally residential or agricultural, so we need to rezone it for industrial and mining purposes. That's a process that will, you know, we'll advance at the right time. That may be maybe in 2025, maybe later, depending on how we progress with the permitting and some of the engineering designs we're doing. So we want to be kind of fully transparent when we go through that process and really understand, you know, are the trains 25,000 tons or 30?

Keith Phillips: It's currently zoned principally residential or agricultural, so we need to rezone it for industrial and mining purposes. That's a process that will, you know, will advance at the right time. That may be, maybe in 2025, maybe later, depending on how we progress with the permitting and some of the engineering designs we're doing. So we want to be kind of fully transparent when we go through that process and really understand, you know, are the trains 25,000 tons or are they 30?

Keith Phillips: Residential or agriculture, we need to rezone it for industrial and mining purposes. That's a process that we'll, you know, we'll advance at the right time. That may be maybe in 2025, maybe later, depending on how.

Michael White: Additionally, the plan included reductions in both CAPEX and cash investments and advances to our joint ventures. I'm pleased to note that we have achieved our $10 million run rate target and we have been able to greatly reduce our second half 2024 CAPEX and joint venture spending by supporting certain cost reductions and cost deferrals to 2025. And in some cases beyond 2025, we expect to recognize the majority of our annual cost savings in the current year.

Keith Phillips: progress with permitting and some of the engineering designs we're doing. So we want to be kind of fully transparent when we go through that process and really understand

Keith Phillips: Is the mine going to produce 242,000 tons or some other number, et cetera? So there's work to be done. Just in the environment we're in, I think you have to think about a project like Carolina, where the initial capital in the DFS was a billion. It's certainly going to be higher than a billion. These are projects that are going to be; they require a different pricing environment like we frankly had over most of the last three years but don't have today.

Keith Phillips: You know, are the trains 25,000 tons or are they 30? Is the mine going to produce 242,000 tons or some different number, etc.? So there's work to be done. Just in the environment we're in, I think you have to think about a project like Carolina where

Keith Phillips: Is the mine going to produce 242,000 tons or some other number, et cetera? So there's work to be done. Just in the environment we're in, I think you have to think about a project like Carolina where the initial capital in the DFS was a billion. It's certainly going to be higher than a billion. These are projects that are going to be; they require a different pricing environment like we frankly had over most of the last three years but don't have today.

Keith Phillips: So there's work to be done. Just in the environment we're in, I think you have to think about a project like Carolina where initial capital in the DFS was a billion; it's certainly going to be higher than a billion. These are projects that are going to be, they require a different pricing environment, like we like we frankly had over most of the last three years, but but don't have today. So I think the timing perspective, you know, we'll be monitoring, you know, we're advancing the project toward a decision, but really being careful and discload about that and ultimately any development decision will be based on different market conditions and the availability of funding from strategic parties and lending sources.

Keith Phillips: Initial capital in the DFS was a billion, it's certainly gonna be higher than a billion. These are projects that are going to be, they require a different pricing environment, like we frankly had over most of the last three years, but don't have today. So I think from a timing perspective

Keith Phillips: So I think from a timing perspective, you know, we'll be monitoring, you know, we're advancing the project toward a decision, but really being careful and disciplined about that. And ultimately, any development decision will be based on different market conditions and the availability of funding from strategic parties and lending.

Keith Phillips: So I think from a timing perspective, you know, we'll be monitoring, we're advancing the project toward a decision, but really being careful and disciplined about that. And ultimately, any development decision will be based on different market conditions and the availability of funding from strategic parties and lending.

Michael White: As noted on this slide, actions to reduce our annual run rate savings included headcount reductions made during the first quarter, office consolidation at our headquarters in North Carolina and cutting of certain third party and internal spending. Second, we are evaluating further reductions within our operating cost structure and capital expenditures and we are working with our joint venture partners to lower planned expenditures during this down cycle.

Keith Phillips: You know, we'll be monitoring, you know, we're advancing the project toward a decision but really being being careful and disciplined about that and ultimately any development decision will be based on different market conditions and the availability of funding from strategic parties and lending sources.

Matthew P.: Got it.

Operator: Got it. A super helpful overview. That's it for me. Best of luck moving forward. Thanks, Matt.

Matthew Key: Got it. A super helpful overview. That's it for me. Best of luck moving forward. Thanks, Matt.

Matthew P.: Super helpful overview.

Matthew P.: That's it for me.

Matthew P.: That's a luck moving forward. Thanks, Matt.

Matt: Got it. Super helpful overview. That's it for me. Best of luck moving forward.

David Becker-Bum: Your next question comes from the line of David Becker-Bum with CD Coven. Hey, Keith, thanks for taking my questions and for the details this morning.

Michael White: Russell. Lastly, we are executing our consolidation strategy of Tennessee Lithium and to Carolina Lithium, as Keith previously mentioned.

Operator: Your next question comes from the line of David Deckelbaum with TD COVID.

Operator: thanksmeant

Speaker Change: your next question comes from the line of david de bumb with pdcoon

Michael White: Now let's turn to slide nine for the second half outlook. We are maintaining our full year outlook for shipments of approximately 126,000 dry metric tons in 2024. As reported, we shipped approximately 30,000 tons in the first half of the year. We planned a ship approximately 96,000 tons in the second half, which aligns with the production outlook and customer allocation of tons from our joint venture at North American Lithium. Of course, certain factors including shipping constraints and customer requirements may impact the timing of future shipments.

Keith Phillips: Hey Keith, thanks for taking my questions and for the details this morning. I was curious just if we could clarify, progressing forward now, if I think about the footprint that you would have, obviously you'd have the benefits of NAL through the JV and then, at this point, not necessarily have a conversion partner associated with it, and that if you were to continue with EWOIA, it would just be, you know, either using a tolling model or selling spodumene concentrate.

David Deckelbaum: Hey Keith, thanks for taking my questions and for the details this morning. I was curious just if we could clarify, you know, progressing forward now, if I think about the footprint that you would have, obviously you'd have the benefits of NAL through the JV and then, You know, if you were to FID Carolina and then integrate, you know, a hydroxide conversion facility, which would be sort of co-located with Carolina, is the thought then that EWOIA would.., at this point not necessarily have a conversion partner associated with it, and that if you were to continue with EWOIA, it would just be, you know, either using like a tolling model or selling spodumene concentrate.

Keith Phillips: that

Speaker Change: Great, Keith. Thanks for taking my questions and for the details this morning.

David Becker-Bum: I was curious just if we could clarify, you know, progressing forward now, if I think about the footprint that you would have, obviously you'd have the benefits of NAL through the JV, and then, you know, if you were to FID, Carolina, and then integrate, you know, a Hydroxide Conversion Facility, which would be sort of co-located with Carolina, is the thought then that EWOIA would at this point not necessarily have a conversion partner associated with it, and then, if you were to continue with EWOIA, would just be, you know, either using like a tolling model or selling spasimen concentrates.

Speaker Change: If you were to Carolina, and then integrate.

Speaker Change: A hydroxide conversion facility, which would be sort of co located with Carolina.

Speaker Change: The thought then <unk> wood.

Keith Phillips: At this point and not necessarily have a conversion partner associated with it and as if you were to continue with <unk> would just be.

Michael White: Patrick will provide a more detailed commercial strategy update in a moment. The key takeaway in our CAPEX and investments outlook is that project related expenditures are greatly reduced compared to the first half of the year. Capital expenditures remain on track for our guidance of $3 to $5 million in the second half of the year and relate mainly to Carolina Lithium. Our joint venture investments in Q2 were lower than anticipated. Further, with the restart of North American Lithium's capital program having been completed and the ongoing approval process at Ooya, we expect our joint venture funding to reduce substantially in the second half of 2024 compared to the first half. Given those considerations, we have provided tighter ranges for our full year guidance in these areas.

Keith Phillips: Either using like a tolling model for selling spot spodumene concentrate.

David Becker-Bum: Yeah, I know a great question. Yeah, the way to think about me, we initially invested in EWOIA to, as a really attractive mining project at relatively low investment costs for us to secure a spasimen that we could eventually convert into lithium hydroxide here in the US, and that's still kind of part of the plan, although I would characterize that as the longer term part of the plan. Today, we look at EWOIA as a highly attractive spasimen mining project where the CAPEX and the DFS, I think, was around $180 million. It'll end up being higher than that, but the CAPEX is going to be very competitive.

Keith Phillips: Yeah, No a great question, yes, the way to think about.

Keith Phillips: Yeah, no, great question. Yeah, the way to think about it is that we initially invested in Avoya as a really attractive mining project at relatively low investment costs for us, to secure spodumene that we could eventually convert into lithium hydroxide here in the U.S. And that's still kind of part of the plan, although I would characterize that as the longer-term part of the plan. Today, we look at Avoya as a highly attractive spodumene mining project where CapEx and the DFS, I think, were around $180 million. It'll end up being higher than that, but the CapEx is going to be very competitive. The operating costs will be quite competitive.

Speaker Change: We initially invested in <unk>.

Keith Phillips: <unk>.

Speaker Change: Really attractive mining project at relatively low investment cost for us.

Keith Phillips: To secure spodumene that we could eventually convert into lithium hydroxide here in the U S and it's still got a part of the plan, although I would characterize that as the longer term part of the plan today, we look at it as.

Speaker Change: Highly attractive spodumene mining project.

Speaker Change: The capex in the DFS I think it was around $180 million, it'll end up being higher than that but it's going to the capex is going to be very competitive operating cost will be quite competitive.

David Becker-Bum: The operating cost will be quite competitive, and we're going to be a joint owner of that project and produce and sell spasimen concentrates into the market. Our expectation at this stage will be, and I think that the Atlantic Lithium, our partner, has a similar expectation. On their side, they're working through their own partnering process with Faroftay, is that we'll each have our own off-take party basically funding our share of capital in exchange for securing our share of the product, and in our case, we might be willing to commit all of our products for a period of time for five or six years, and if you're and there are parties around the world for whom that's pretty compelling because Davis, you know, just like we had the prior question about Tennessee, you know, when it's sort, but face to it, Caroline, and when we build that second plan, it will be important as large as me to fly locked up.

Michael White: As always, our outlook is subject to changes in market conditions.

Keith Phillips: And we're going to be a joint owner of that project and produce and sell spodumene concentrate in the market. Our expectation at this stage will be, and I think that Atlantic Lithium, our partner, has a similar expectation on their side. They're working through their own partnering process for offtake, is that we'll each have our own offtake party basically funding our share of capital in exchange for securing our share of the

Keith Phillips: And we're going to be a joint owner of that project in produce and sell spodumene concentrate into the market. Our expectation at this stage will be and I think that Atlantic lithium our partner has a similar expectation on their side. They are working through their own partnering process with <unk> is that we will each have our own offtake party basically funding our share of capital and <unk>.

Patrick Brindle: And with that, I'll turn it over to Patrick Brindle for review of operations and project updates. Thanks, Michael.

Patrick Brindle: We can now turn to slide 11 for an update on operational performance at NAL. As Keith noted, ramp up at NAL has gone well, commissioning of the crushed word dome this past quarter represents the completion of the capital spending of the NAL restart program that began in 2022. Steady state production at full run rate was achieved in June 2024 ahead of our second half 24 forecast.

Keith Phillips: And in our case, we might be willing to commit all of our product for a period of time, four or five or six years. And there are parties around the world for whom that's pretty compelling, because just like we had the prior question about Tennessee, when we build that second plant, it'll be important to have a spodumene supply locked up. And the same will be true for other people that are developing projects around the world now.

Speaker Change: For securing.

Speaker Change: Our share of the product and.

Speaker Change: In our case, we might be willing to commit all of our products for a period of time, four or five or six years and if you are in there are parties around the world for whom that's pretty compelling because.

Speaker Change: Just like we had the prior question about Tennessee.

Patrick Brindle: Given its history, North American Lithium may be the least understood asset in the industry. It's the largest active Lithium operation in North America with arguably the best location among all Canadian Spodgaming projects. Significant capital has been deployed at NAL over the past 15 years and we are operating today with an improving cost profile thanks to management's tremendous efforts. So, after two years of very hard work, I'd like to extend the special congratulations for achieving the ramp up milestone to Sion of President Sylvain Colard and his team, including Sal, Philippe, Sebastien, Lin, Jean-Luc, Bernard, and Patrick, and many others who played a role in getting us to this point.

Speaker Change: But phase II Carolina, when we build that second plant it will be important as largely supply locked up.

David Becker-Bum: And the same will be true for other people that are developing projects around the world now, so the availability material gone is really attractive. So yeah, you should, I would think about the warrior, a lot like maybe today, you think about NAL. We produce large mean we sell our material, the people like Tesla and LG Kim. We'll have other similar customers for the material from Ghana, and that's the business. That's our cool. For the time being, our core business is watching me concentrate mining and production. And, but eventually we're still focused on it with partners, developing the downstream side of the business.

Speaker Change: And the same will be true for other people that are developing projects around the world now so the availability of materials gone as really attractive. So yes, I would think about.

Keith Phillips: So, the availability of material from Ghana is really attractive. So, yeah, I would think about The Woya, a lot like maybe today you think about NAL. We produce spodumene, and we sell our material to people like Tesla and LG Chem. We'll have other similar customers for the material from Ghana, and that's the business that's our core business for the time being. Our core business is splotch me concentrate mining and production, and eventually, we're still focused on it with partners developing the downstream side of the business.

Keith Phillips: DeGioia, a lot like maybe today you think of it as NAL, we produce spodumene, and we sell our material to people like Tesla and LG Chem. We'll have other similar customers for the material from Ghana. And that's the business. That's our goal for the time being. Our core business is Spodumy Concentrate Mining and Production, and eventually, we're still focused on it with partners developing the downstream side of the business.

Speaker Change: We're a lot like maybe today, you think about nal, we produce spodumene, we sell are material to people like Tesla and LG Chem.

Keith Phillips: We will have other similar customers for the material from Ghana, and that's a business that is for the time being our core business is spodumene concentrate mining and production.

Keith Phillips: But essentially we are we're still focused on it with partners.

Keith Phillips: Developing the downstream side of the business.

David Deckelbaum: I appreciate that clarification. And maybe following up on that a bit for my second question, and I guess it's a little bit philosophical, but as you look forward to Carolina, which is, you know, a bit of a crown jewel in your portfolio, Is there is there a contingency where you would consider, and I ask this in the context of, there's obviously some circularity in logic in North America with bringing on a spodumene concentrate mine without a conversion facility that would be IRA compliant, but obviously the conversion is, you know, the most capital intensive portion and arguably the lowest margin in return.

Keith Phillips: I appreciate that clarification. And maybe following up on that a bit for my second question, and I guess it's a little bit philosophical, but as you look forward to Carolina, which is a bit of a crown jewel in your portfolio, is there a contingency where you would consider, and I ask this in the context of, there's obviously some circularity in logic in North America with bringing on a spodum and concentrate mine without a conversion facility that Now, is there a scenario where you would consider bringing in the mine?

David Becker-Bum: Yeah, I appreciate that clarification.

Speaker Change: Yes, I appreciate that clarification.

Patrick Brindle: I'd also like to thank James Brown for his service as Sion of Mining's interim CEO during the past year and to welcome Lucas Dao and his role as Sion as managing director and CEO. We look forward to continuing our strong partnership and demonstrating the full potential of NAL over time. 13. Moving to slide 12, NAL increased production quarter on quarter by 23% to 49,700 tons of Spodium Inconsent Rate. Lithium Recovery and NIL utilization achieved new quarterly highs of 68% and 83% respectively.

Keith Phillips: And maybe following up on that a bit for my second question.

David Becker-Bum: And maybe following up on that a bit for my second question, and I guess it's a little bit philosophical, but as you look forward to Carolina, which is, you know, a bit of a crown jewel in your portfolio. Is there is there a contingency where you would consider and I ask this in the context of there's obviously some circularity and logic in North America with bringing on a spodium and concentrate mine without a conversion facility that would be IRA compliant. But obviously, the conversion is the most capital-intensive portion and arguably the lowest margin in return.

Keith Phillips: I guess, it's a little bit philosophical, but as you look forward to Carolina, which is a bit of a crown jewel in your portfolio.

Keith Phillips: Is there is there a contingency where you would consider and I ask this in the context of there's obviously, some circularity and logic in North America with bringing on the spodumene concentrate mine without a conversion facility that would be IRS compliant.

Speaker Change: But obviously the conversion is the most capital intensive portion and arguably the lowest margin return.

Patrick Brindle: With ramp-up effectively completed, we expect continued steady-state production levels for the remainder of the year with incremental improvement to quarterly utilization rates. NAL's drill program also returned additional positive results in the quarter with assays identifying multiple new high-grade Lithium zones beyond the current ultimate pitch shell. Management will use these data and focus on the potential for a significant upgrade to NAL's mineral resource's estimate.

David Becker-Bum: Is there a scenario where you would consider bringing on the mine in a staggered fashion, whereas the conversion facility would be delayed, you know, years beyond that, or does it always have to be coming online and coincident with each other. You know, we've thought about different scenarios, and we could obviously develop it in different scenarios. We think with Carolina in particular, you know, it's a good or body in an exceptional location, and, you know, the location is particularly conducive to chemical conversion. And that's what makes it interesting for strategic parties. So you think about battery companies, car companies, you know, other mining companies, and lithium companies.

David Deckelbaum: Now, is there a scenario where you would consider bringing on the mine in a staggered fashion, whereas the conversion facility would be delayed, you know, years beyond that, or does it always have to be coming online and coincident with... You know, we've thought about different scenarios that we could.

Keith Phillips: Now is there is there a scenario where you would consider bringing on the mine.

Speaker Change: In a staggered fashion, whereas the conversion facility would be delayed years beyond that or does it always has to be coming online in coincident with each other.

Speaker Change: We've thought about different scenarios and we could obviously development in different scenarios, we think with Carolina in particular.

David Deckelbaum: You know, we've thought about different scenarios, and we could obviously develop it in different scenarios. We think with Carolina in particular, it's a good ore body in an exceptional location. And, you know, the location is particularly conducive to chemical conversion. And that's what makes it interesting for strategic parties.

Speaker Change: Yeah, it's a good ore body in an exceptional location and.

Speaker Change: And the location is particularly conducive to chemical conversion and that's what makes it interesting for strategic parties, So you're thinking about battery companies car companies.

Patrick Brindle: Turning to slide 13 for discussion on our commercial strategy and shipping plans. The forward price curves on this slide for CME lithium hydroxide and GFX lithium carbonate have been in contango for most of 2024 and this trend appears to continue into 2025. Starting earlier this year, we began working with a trading partner to capitalize on this situation. We've structured spot sales beginning in Q2 of this year so that we can mitigate downside price exposure and avoid the M-plus-1 settlement pricing in a falling price environment which had negative consequences for us on shipments we made in 2023.

Keith Phillips: So you think about battery companies, car companies, other mining companies, and lithium companies. It's a unique opportunity to build an integrated business. Ultimately, when we're in a position to kind of outline what the funding will look like for Carolina Lithium, I expect you're going to see a very strong component of capital coming from one or more strategic partners, ideally with one of them being somebody who can contribute significantly on the technical side, on the downstream business as well. So, in an ideal world, we'll be, and David, the format could take a lot of different forms. The deal could take a lot of different forms.

Speaker Change: Mining companies in lithium companies, it's a unique opportunity to build an integrated business ultimately.

David Becker-Bum: It's a unique opportunity to build an integrated business. Ultimately, you know, when we're in a position to kind of outline what the funding will look like for Carolina Lithium. I expect you're going to see a very strong component of capital coming from one or more strategic partners. Ideally, ideally with one of them being somebody who can contribute significantly on the technical side, on the downstream business as well. So an ideal world will be and and and David that format could take a lot of the deal could take a lot of different forms. We could own 100% of the mine and say 50% of the chemical plant.

Speaker Change: When we were in a position to kind of.

Speaker Change: Outline what the funding will look like for Caroline lithium I expect you're going to see very strong component of capital coming from one or more strategic partners.

David: Ideally ideally with one of them being somebody who can contribute significantly on the technical side on the downstream business as well so in an ideal world will be and David that format could take the deal can take a lot of different forms we could own 100% of the mine and say 50% of the chemical plant.

Keith Phillips: We could own 100% of the mine and say 50% of the chemical plant. We could own 50% of everything. We could do a lot of different things. And those are the sorts of things we're kind of mulling over with different strategic partners.

Patrick Brindle: We've noted that most of our 2024 shipments will be backloaded to the second half of this year. Our target is to ship 96,500 tons from July through December. NAL is expected to produce at full run rate for the rest of this calendar year which supports our sales target. Also to help reduce our cost of sales, we are planning to make fewer shipments going forward with larger cargo volumes per shipment. We're working in partnership with our Sionica Beck joint venture to co-ship cargo sold to Piedmont with cargo sold to third parties. Depending on the size of each shipment we estimate that this may save us as much as $60 per ton on a CIF basis.

David Becker-Bum: We could own 50% of everything. We could do a lot of different things, and those are the sorts of things we're kind of mulling around with different strategic parties. But their interest isn't in a spa gyming supply in North Carolina. They're interested in a lithium chemical supply in North Carolina in the Southeastern US. And and and and the project on integrative basis holds together.

Speaker Change: We go to 50% of everything we can do a lot of different things and those are the sorts of things were kind of mulling around with different strategic parties.

Keith Phillips: But their interest isn't in a spodumene supply in North Carolina. Instead, their interest is in a lithium chemical supply in North Carolina and the Southeast. And the project on an integrative basis holds together. I mean, where we are right now in Quebec, you know, NAL is doing great. But to your point, when you're producing spodumene in Quebec and you're shipping it to customers who are principally in China right now, there's just a lot of economics kind of lost in the transport industry and the logistics industry. And in North Carolina, we can eliminate all that and capture it in the project, and it really improves the overall economy.

Speaker Change: But their interest isn't DNS spodumene supply in North Carolina. Their interest is in our lithium chemical supply in North Carolina in the southeastern U S.

Speaker Change: And in the projects on integrated basis holds together I mean, where we are right now in Quebec, and they all is doing great but to your point when you are producing spodumene in Quebec, and you're shipping it to the customers who are principally in China right. Now, there's just a lot of economic sense, it's the transport industry and logistics industry.

David Becker-Bum: I mean where we are right now in Quebec, you know, anything else doing great. But, but to your point, when you're producing spa gym in in Quebec and you're shipping it to the customers who are principally in China right now. There's just a lot of economics that a lot is the transport industry and logistics industry. And in North Carolina, we can eliminate all that and capture it in the project and really improve the overall economics. No, I appreciate it. Thank you. Thank you, David.

Speaker Change: And in North Carolina, we can eliminate all of that captured in the projects that really improves the overall economics.

Keith Phillips: Yes.

Speaker Change: Appreciate that Keith.

Speaker Change: Thank you thanks, David.

Patrick Brindle: Moving ahead to Ghana. In Ghana, the application to ratify the a William-Mining lease has been submitted to the Ghanaian Parliament. We're continuing to wait on the outcome of that process which we expect will be positive in due course.

Noel Parks: And your last question comes from the line of Noel Parks with two wee brothers.

Keith Phillips: And your last question comes from the line of Noel Parks with Tuohy Brothers.

Operator: And your last question comes from the line by Noel Parks with the Tui Brothers.

David Deckelbaum: And your last question comes from the line by Noel Parks with the Tui Brothers.

Operator: Okay.

Noel Parks: Hi, good morning. I just have a couple questions. I was thinking about, you know, in terms of funding. The hypothetical party you've been talking with for some time, you know, throughout the ups and downs of the William Market, the last couple of years, to the degree that they're sideline now. How quickly, roughly, could you envision that turning around and then arriving at satisfactory new terms in the event we, we did get some clearer visibility as to a rebound on the lithium pricing. Is that something that is quarters' worth of work away? Do you think? Of course, something that could be put together quite quickly just based on work you've done today.

Operator: Hi, good morning. I just have a couple of questions. I was thinking about, you know, in terms of funding.

Operator: Hi, good morning. I just have a couple of questions. I was thinking, you know, in terms of funding. The hypothetical parties you've been talking with for some time throughout the ups and downs of the lithium market the last couple of years, to the degree that they're sidelined now, how quickly, roughly, could you imagine that turning around and them arriving at satisfactory new terms? In the event that we did get some clearer visibility as to a rebound in lithium prices, is that something that is quarters worth of work away, do you think, or something that could be put together quite quickly, just based on the work you've done to date?

Speaker Change: Hi, good morning.

Speaker Change: Just a.

Noel Parks: Couple of questions I was thinking about.

Patrick Brindle: However, that timeline is now subject to the country's legislative processes which are outside of our control. Meanwhile, as Keith mentioned, we have mandated a financial advisor as part of a funding strategy to raise our share of the development capital for a WUIA on a non-dilutive basis to Piedmont shareholders. Our general strategy is to mirror the efforts made by Atlantic Lithium to offer long-term off-take in exchange for funding to support our capital contribution. Our process is going well with initial outreach calls completed and we will continue with these efforts.

Noel Parks: In terms of funding.

Speaker Change: The hypothetical partying you have been talking with for some time throughout the ups and downs.

Speaker Change: The lithium market the last last couple of years.

Speaker Change: To the degree that their sideline now.

Speaker Change: How quickly it roughly.

Speaker Change: Could you.

Speaker Change: Envision that turning around and.

Speaker Change: Arriving at satisfactory terms in the event we did get.

Speaker Change: Some clearer visibility after a re.

Patrick Brindle: Finally and sadly, on July 9th, 2024, Atlantic Lithium reported a fatality at the WUIA project site. Following the accident, the Minerals Commission of Ghana conducted an investigation and since that time Atlantic Lithium has resumed operations in accordance with the Commission's recommendations. This has been a difficult time for our partner, and we send our deepest condolences to their teammates' family and friends.

Noel Parks: One on lithium pricing is that something that is quarters worth of work away do you think or something that can be put together quite quickly just based on.

Speaker Change: Work you've done to date.

Keith Phillips: Yeah, good question. I guess, I guess what I would say is the parties that care for the most part still care pretty intensively right now. We're just not really interested in parting with substantial part of the economics based on kind of the current pricing environment. So it has been really insane last four or five years to see the interest of different parties evolve. You know, we know the big car companies. We know the big battery companies, cathode companies, et cetera. And, and there's new, and there are some other groups that are now interested that really worked a couple of years ago.

Speaker Change: Yeah. Good question I guess, I guess, what I would say is the parties that care for.

Keith Phillips: Yeah, good question. I guess what I would say is the parties that care, for the most part, still care pretty intensely right now. We're just not really interested in parting with a substantial part of the economics based on the current pricing environment. So it has been really interesting in the last four or five years to see the interest of different parties evolve. You know, we know the big car companies; we know the big battery companies, cathode companies, etc.

Noel Parks: Yeah, good question. I guess what I would say is the parties that care, for the most part, still care pretty intensely right now. We're just not really interested in parting with a substantial part of the economics based on the current pricing environment. So it has been really interesting over the last four or five years to see the interest of different parties evolve. You know, we know the big car companies; we know the big battery companies, cathode companies, etc.

Keith Phillips: For the most part still care pretty intensively right now, we're just not really interested in partnering with substantial part of the economics based on kind of the current pricing environment. So.

Keith Phillips: Really in the last four or five years to see the interest of different parties involved.

Keith Phillips: The big car companies, we know that the battery companies catheter companies et cetera.

Keith Phillips: And there are some other groups that are now interested that really weren't a couple of years ago. It's quite interesting how some of the people that were the most interested when we first started talking to partners about Carolina two and a half, three years ago, one or two of them are still highly interested; one or two of them are less interested. But there are new parties who are all of a sudden quite interested. So there's no shortage of people, the parties that are, that kind of want to pursue something. And it's just really a question of bringing it all together. And our conversations will continue.

Keith Phillips: And there is new and there are some other groups that are now interested that really weren't a couple of years ago. It's quite interesting how some of the people that we're the most interested when we first started talking to partners about Carolina 253 years ago.

Keith Phillips: It's quite interesting. How some of the people with the most interested when we first started talking to partners about Carolina two and a half, three years ago, one or two of them are still highly interested. One or two of them are less interested. But they're new parties who are all of a sudden quite interested. So there's no shortage of people. The parties that are that kind of want to pursue something. And it's just really a question of. Bringing it all together, and our conversations continue in the team was in Tokyo and Seoul two weeks ago, seeing potentially interested parties, and the interest is sincere and it's pretty deep.

Keith Phillips: One or two of them are still highly interested one or two of them are less interested in but there are new parties, who were all of a sudden quite interested so.

Patrick Brindle: We have been in a reduced spend posture at Carolina for a number of months, and will continue to maintain this position in the current market. During this time, we plan to focus on advancement of our remaining permits and approvals, work on phase development planning, and engage in strategic partnering conversations with interested parties.

Keith Phillips: There is no shortage of people parties there.

Keith Phillips: Kind of want to pursue something.

Keith Phillips: And it's just really a question of bringing it all together and our conversations continue and the team was in Tokyo and Seoul, two weeks ago.

Noel Parks: The team was in Tokyo and Seoul two weeks ago, seeing potentially interested parties, and the interest is sincere, and it's pretty deep. But I think since we're in a position where we're not anxious to kind of develop the project right now anyway, from a funding perspective and a market perspective, we just don't feel we're in a big hurry to bring that together. And again, then the nature of the strategic partner we get may impact the nature of the debt funding we see, and so it's a kind of a little bit of a circular process and an iterative process itself, but overall, I think bringing it all together in the right way to develop the project responsibly and really protect returns for our shareholders.

Keith Phillips: The team was in Tokyo and Seoul two weeks ago, seeing potentially interested parties, and the interest is sincere, and it's pretty deep. But I think since we're in a position where we're not anxious to kind of develop the project right now anyway, from a funding perspective and a market perspective, we just don't feel we're in a big hurry to bring that together. And again, then the nature of the strategic partner we get may impact the nature of the debt funding we get. You know, we're certainly two plus years away from FID, which we're okay with in this market, but if the market was different, if the market hadn't gotten to these levels, that could all happen more quickly.

Keith Phillips: <unk> potentially interested parties and the interest is sincere.

Patrick Brindle: That concludes our commercial and projects update, with that I'll turn it back to Keith for an update on the market and our funding strategies. Thank you, Patrick.

Keith Phillips: Deep.

Keith Phillips: But I think we're since we're in a position where we're not anxious to develop the project right now anyway from a funding perspective in the markets perspective, we just don't feel we're in a big hurry to bring that together and again the nature of the strategic party, we get may impact the nature of the debt funding we seek.

Keith Phillips: But I think what we're since we're in a position where we're not anxious to kind of develop the project right now anyway from a funding perspective and a market perspective. We just don't feel we're in a big hurry to bring that together. And again, then the nature of the strategic party we get may impact the nature of the debt funding we seek. And so it's a kind of, it's a little bit of a circular process and an iterative process itself. But overall, I think to bring it all together the right way to develop the project responsibly and really protect returns for our shareholders.

Keith Phillips: I'd like to conclude our presentation with some thoughts about the market. At this point, we are all aware that Lithium prices are depressed. However, given the historic cyclicality of the industry, we believe the current market dynamics are setting the stage for significant opportunity in the mid and long term. Prices started the year low, began rebounding after the return from the Chinese New Year, and then retrenched. Those who have followed Lithium for any period of time will tell you that the market is cyclical.

Keith Phillips: And so it's a kind of it's a little bit of a circular process, an iterative process itself, but.

Keith Phillips: Overall, I think to bring it all together the right way.

Keith Phillips: To develop the project responsibly and really protect returns for our shareholders.

Noel Parks: You know, we're certainly two plus years away from FID, which we're okay with in this market. But if the market was different, if the market hadn't gotten these levels, that could all happen more quickly. So the project is, you know, DFS complete money permit hand, you know, final steps kind of in reaching our perspective and really just waiting like several of the projects in the industry, maybe for a different market conditions. Right. Fair enough. Absolutely. And, you know, just in the discussion of a little while ago, you mentioned just an example, the demand for lithium for EV batteries and everything is still definitely on the ramp, and you know, there is visibility into that.

Noel Parks: You know, we're certainly two plus years away from FID, which we're okay with in this market. But if the market was different, if the market hadn't gotten to these levels, that could all happen more quickly. So the project is, you know, DFS complete, mining permit in hand, you know, final steps kind of in reaching our perspective, and really just waiting, like several other projects in the industry, maybe for a different

Keith Phillips: We're certainly two plus years away from that which we're okay with this and mark market, but if the market was different at the market hadn't gotten to these levels.

Keith Phillips: It has been that way for the last decade, and we expect cyclicality to endure, as the market continues to grow and mature. High prices were the cure for high prices in 2022 and 2023, with new supply entering the market. As a result, prices are currently well below reinvestment economics, which is caused a raft of disruptions across the project development timeline. Just in the last week, we've heard from two major producers that are slowing down their spend on growth projects to conserve cash.

Keith Phillips: That could all happen more quickly so the project is.

Keith Phillips: So, the project is, you know, DFS complete, mining permit in hand, you know, final steps kind of in reach from our perspective, and really just waiting, like several other projects in the industry, maybe for a different market.

Keith Phillips: S complete mining permit in hand.

Keith Phillips: Final steps kind of in reaching our perspective and really just waiting like several other projects in the industry may be.

Keith Phillips: For a different market conditions.

Speaker Change: Right fair enough absolutely.

Keith Phillips: Right, fair enough, absolutely. And, you know, just in the discussion a little while ago, you mentioned just an example of the demand for lithium for EV batteries and everything. It is still definitely on the ramp, and there is visibility into that. I just wondered, and sorry if you addressed this earlier and I just missed it, but thinking about sort of energy storage. Part of the lithium market, separate from mobility, just the whole, sort of the flurry of demand that we're going to see from continuing to handle the intermittency of renewable sources as they are integrated in the grid.

Speaker Change: And you know just.

Keith Phillips: However, the key drivers of the energy transition remain intact. The global electrification industry continues to experience considerable growth for a maturity market. Lithium demand is growing significantly faster than other battery metals, such as copper and nickel. And the regionalization of battery supply change is progressing. Next slide.

Keith Phillips: Jeff.

Speaker Change: In the discussion a little while ago you mentioned different example.

Speaker Change: Land for.

Speaker Change: Lithium for EV batteries and everything is.

Keith Phillips: is still definitely on the ramp, and there is visibility into that. I just wondered, and sorry he addressed this earlier and I just missed it, but thinking about sort of energy storage. It's a topic we hear talked about a lot in some quarters and just barely mentioned in others, the broader storage market. Any thoughts on how that, I don't know, might help the case for lithium?

Speaker Change: So definitely on the ramp in.

Keith Phillips: There is visibility into that.

Noel Parks: I just wondered, and sorry, you addressed this earlier and I just, but thinking about sort of the energy storage. Part of the lithium market is separate from modality. Just the whole sort of slug of demand that we're going to see from continuing to handle intermittency of renewable sources as they're integrating in the grid. It's how we hear a lot in some quarters and just barely mention another is the broader storage market. So any thought on how that might help the case for lithium sort of re-emerge sooner rather than later. Yeah, listen, I think there's a lot of people to study the easy demand for Lithium very deeply and not as many that do as much analysis on the ESS, but it is a huge market in a customer perspective, but obviously the extent energy storage complexes are being built at scale and require Lithium ion batteries or whether they require them or not.

Keith Phillips: I just wondered.

Keith Phillips: I've said this before, but the report of the Lithium industry's demise has been greatly exaggerated. EV sales continue to rise across the globe. 7.1 million EVs were sold globally in the first half of 2024, reaching an all-time high in the second quarter. The US EV market also achieved records in Q2, with year-over-year growth of 11% and record high volumes. Total EV sales were also higher than Q1 sales by 23% exceeding industry expectations.

Keith Phillips: And I'm sorry, if you addressed this.

Keith Phillips: Earlier I missed it but.

Speaker Change: Thinking about sort of the energy storage.

Speaker Change: Part of the lithium market.

Speaker Change: Separate from mobility.

Keith Phillips: Jeff.

Keith Phillips: Whole.

Speaker Change: Sort of slug of demand that we're going to see from continuing to.

Speaker Change: Handle intermittency.

Keith Phillips: Great.

Speaker Change: Renewable sources are there.

Keith Phillips: And battery sizes are growing with pack sizes forecasted to nearly double by 2040 as consumers demand longer ranges and larger vehicles. EVs are becoming more affordable. China has led in market adoption and offers multiple options for entry-level consumers, price below comparable internal combustion engine vehicles. In the US, select EVs are beginning to reach price parity. And the growing competition to introduce new models should continue to add price pressure and further boost EV adoption.

Keith Phillips: Grid.

Keith Phillips: It's a topic we hear talked about a lot in some quarters, and just barely, barely mentioned in others, the broader storage markets. Any thoughts on how that, I don't know, might help the case for lithium? sort of reemerge sooner rather than later. Yeah, listen. It's...

Keith Phillips: It's probably hear talked about a lot in some quarters and just barely barely mentioned and others the broader storage market. So.

Speaker Change: Any thoughts on how that might.

Speaker Change: It might help the case for lithium.

Speaker Change: Sort of reemerged sooner rather than later.

Keith Phillips: Yes.

Noel Parks: Yeah, listen, I think there are a lot of people that study the EV demand for lithium very deeply, and not as many that do as much analysis on ESS, but it is a huge market in and of itself, a huge growth market. We're not focused on it from a customer perspective, but obviously, to the extent energy storage complexes are being built at scale and require lithium ion batteries, or whether they require them or not, they will use, and they will prefer lithium ion batteries for the most part.

Keith Phillips: Yeah, listen, I think there are a lot of people that study the EV demand for lithium very deeply, and not as many that do as much analysis on ESS, but it is a huge market in and of itself, a huge growth market. We're not focused on it from a customer perspective, but obviously, to the extent energy storage complexes are being built at scale and require lithium ion batteries, or whether they require them or not, they will use, and they will prefer lithium ion batteries for the most part.

Keith Phillips: I think there's a lot of people in the study the easy demand for lithium.

Keith Phillips: A host of other data is available ranging from the growth of energy storage to the demand for Lithium relative to other battery metals. But the trend is clear, Lithium demand will continue to grow at an elevated rate as will America's need for a robust supply chain to support US electrification and the future of our nation's energy security.

Keith Phillips: Very deeply and not as many that do as much analysis on DSS, but it is a huge market in and of itself huge growth market. We're not focused on it from a customer perspective, but obviously to the extent energy storage complexes are being built at scale and require lithium ion batteries or whether they require them and that they will use they will prefer lithium ion batteries for the most part it just <unk>.

Noel Parks: They will use; they will prefer Lithium ion batteries to the most part. It just impacts in a positive way demand for lithium overall, and that's good for us, and that's a trend that's accelerating, not declining. So yeah, I think what the important takeaway and as we think about our company where we are today and when we think it's a depressed market is lithium demand growth whether it from EVs or continued growth in portables or ESS, which is a huge opportunity, is really strong. 15 to 20% CAG are going forward for the next 5 or 10 years.

Keith Phillips: It just impacts demand for lithium overall in a positive way; that's good for us. And that's a trend that's accelerating, not declining. So yeah, I think the important takeaway, and as we think about our company where we are today, in what we think is a depressed market, is that lithium demand growth, whether it's from EVs or, you know, continued growth in portables, or ESS, which is a huge opportunity, is really strong, 15 to 20% CAGR going forward for the next five or 10 years.

Keith Phillips: <unk> in a positive way demand for lithium overall is good for us and Thats a trend thats accelerating not declining so.

Keith Phillips: Yes, I think the important takeaway and as we think about our company, where we are today and what we think is a depressed market as lithium demand growth, whether it's from evs or.

Keith Phillips: The continued growth in portables, or ESI, which is a huge opportunity is really strong 15% to 20% CAGR going forward for the next five or 10 years, we had a couple of analysts from other firms and us there.

Keith Phillips: Today, China produces approximately 60 percent of the world's total lithium supply versus only 2 percent for the United States. Point being, the demand for lithium is here, the future potential of the industry is strong, and the need to fortify America's energy security to support the electrification revolution will only propel the growth potential of the domestic market.

Noel Parks: We had a couple analysts from other firms send us their outlooks, their firms' outlooks for demand growth for say copper or nickel or rares or other things. Copper people talk about copper, which is a great commodity. People talk about the shortages and how much more we're going to need. Copper is growing two or three percent a year. Lithium is growing 15 to 20 percent a year. We're going to get through this supply and digestion. I think sooner than people think, and I think we're going to be back on our front foot where the band growth is going to be hard to satisfy for a long period of time, and I think prices are going to respond to that.

Keith Phillips: We had a couple analysts from other firms send us their outlooks, their firm's outlooks for demand growth for, say, copper or nickel or rare earths or other things. You know, copper, people talk about copper, which is, you know, it's a great commodity. People talk about the shortages and how much more we're going to need. Copper is growing two or 3% a year. Lithium is growing 15 to 20% a year. We're going to get through this supply indigestion, I think, sooner than people think.

Keith Phillips: We had a couple analysts from other firms send us their outlooks, their firms' outlooks for demand growth for, say, copper or nickel or rare earths or other things. You know, copper, people talk about copper, which is, you know, it's a great commodity. People talk about the shortages and how much more we're going to need. Copper is growing two or 3% a year. Lithium is growing 15 to 20% a year. We're going to get through this supply indigestion, I think, sooner than people think.

Speaker Change: Outlooks, the firm's outlook for demand growth for copper and nickel or <unk> or other thing copper.

Keith Phillips: Copper people talk about copper, which is it's a great commodity people talk about the shortages and how much more we're going to need copper is growing 2% and 3% a year lithium is growing 15% to 20% a year, we're going to get through the supply indigestion I think sooner than people think and I think we're going to be back on our front footwear demand growth is going to be hard to satisfy for a long period of time and I think prices are.

Keith Phillips: Whether the objective is to support American manufacturing and jobs or global decarbonization, US energy independence is an important bipartisan issue for electrification. Next slide.

Keith Phillips: And I think we're going to be back on our front foot where demand growth is going to be hard to satisfy for a long period of time. And I think prices are going to respond to that. So ESS demand growth is very welcome. It's not something we spend a lot of time focused on, but I think over time it's going to become a bigger component.

Keith Phillips: To respond to that so esf's demand growth is very welcome that's not something we spend a lot of time focused on but I think over time, it's going to become a bigger component of the business.

Keith Phillips: Shifting back to the current market dynamics to conclude with a few points, we all know that lithium markets have been challenging and companies throughout the sector are positioning to navigate the down cycle. Piedmont is no different. We are laser focused on smart capital deployment and cost savings. We've achieved our annual run rate cost reduction target to date and are looking at opportunities for further savings. Significant reductions in CAPEX and investments are expected in the second half of the year compared to the first half as we complete important investments in Quebec and defer other spending where possible.

Noel Parks: So ESS demand growth is very welcome.

Noel Parks: It's not something we spend a lot of time focused on, but I think over time it's going to become a thicker component of the business.

Speaker Change: Great. Thanks, a lot.

Noel Parks: Great thanks.

Noel Parks: Thanks, Noel.

Noel: Thanks Noel.

Erin Sanders: That concludes our Q&A session.

Eric <unk>: That concludes our Q&A session I will now turn the conference back over to Eric <unk> for closing remarks.

Operator: That concludes our Q&A session. I will now turn the conference back over to Erin for closing remarks.

Erin Sanders: I will now turn the conference back over to Erdeen for closing remarks. Thank you, operator. Back concludes our call today. We thank you for your time and interest in Piedmont Lithium. As a reminder, you can find our earnings release presentation and a replay of this call on our website. Thank you.

Erin Sanders: Thank you, operator. That concludes our call today. We thank you for your time.

Erin: Thank you operator that concludes our call today, we thank you for your time and interest in Piedmont lithium.

Operator: Thank you, Operator. That concludes our call today. We thank you for your time and interest in Piedmont Lithium. As a reminder, you can find our earnings release, presentation, and a replay of this call on our website. Thank you.

Operator: As a reminder, you can find our earnings release presentation and a replay of this call on our website.

Operator: <unk>.

Operator: This concludes today's conference call. You may now disconnect.

Operator: This concludes today's conference call you may now disconnect.

Operator: [music].

Keith Phillips: That concludes our presentation portion of the call. Thank you for the time and attention.

Operator: Okay.

Operator: We'll shift to Q&A. Thank you. The floor is now open for questions. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star one again. If you are called upon to ask your question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. We do request for today's session that you please limit to one question and one follow-up. Again, press star one to join the queue.

Operator: Yeah.

Operator: [music].

Operator: Yes.

Operator: [music].

William Peterson: And your first question comes from the line of Bill Peterson with JP Morgan. Please go ahead. Good morning, Keith and team.

Keith Phillips: This is a Bennett on the bill. Given a strong 2Q production, a Spodgamy production and comments in NAL has now reached a steady state as a June, wanted to gauge how much further upside you think can be achieved relative to 2Q production levels as we look through the back half of the year. Thanks, Bennett. I think at NAL, the target production at NAL is say 210,000 tons a year in that zip code, we're operating at that level now. So I think if you think about that, it's kind of 50 to 55,000 tons a quarter. I think that's something that should be sustainable going. Forward.

Operator: Okay.

Operator: [music].

Operator: Sure.

Operator: Okay.

Operator: Yes.

Operator: [music].

Operator: Okay.

Keith Phillips: All right, that's helpful. And then as we think about the cost structure with the crushed orgdom now complete, what are your expectations on, you know, further cost reductions through the back after the year at NAL as well? You know, the progress is really good there. Sionna put out their own financial numbers when you're so go. And they're accounting, obviously showing things on a cruel basis, on a ton of shipped basis, and really running inventory sort of through the system inventory from several quarters ago, but operating costs themselves, cash operating costs are approving meaningfully, improving meaningfully.

Keith Phillips: And I think over the course of the next, and then we'll continue to over the course of the next year to 18 months, and should be some $700 a ton on a cash cost basis delivered to Quebec City.

Keith Phillips: Great, thanks so much. I just follow up by saying in today's pricing environment, just the internal discussions we're having around NAL and looking at budgeting going forward. We see NAL in today's pricing environment as a cash flow breakeven or positive enterprise with obviously huge leverage to any increases. But in the past several quarters, it's been obviously in ramp-up and burning cash, and the partners have had to contribute into that. That is something we think is coming to an end.

Tyler DiMatteo: Your next question comes from the line of Tyler DiMateo with BTIG.

Tyler DiMatteo: Please go ahead. Yeah, hi guys and good morning. Thanks for taking the question.

Keith Phillips: Keith, I wanted to start on the the shift in the strategy here with Tennessee and moving some capacity to North Carolina. It's Tennessee completely shelved for now, and I guess the comments surrounding the appropriate market levels, surrounding the timing of North Carolina. I guess I'm just curious, what does that mean, and how do you really think about that and the implications for the timeline there? Yeah, the way to think of a Tennessee.

Keith Phillips: Tennessee and Carolina were always intended to be developed in some sequence based on different permitting timelines and market conditions. There was a period where it appeared at the Tennessee is something we would prioritize first. That was certainly our view 18 plus months ago. Ultimately with my permit coming through in North Carolina, with market conditions being such that neither project is going to be developing today's market. And just fundamentally, the industry needs stronger pricing for big projects to be built.

Keith Phillips: Full stop. That's across the board. It's not a Piedmont matter. You've heard it from Al Marley, you've heard it from Arcadia, and you're going to hear it from others over time. We're just not at a pricing level where big new greenfield projects can get built. It just doesn't make sense. It's not a good use of money for shareholders. So as we thought about the development and we think about Tennessee really as an independent chemical plant, we've always been planning and permitting 60,000 tons of capacity at North Carolina.

Keith Phillips: So the opportunity is slot Tennessee in as spring to in Carolina. The longer term perspective was something that just makes more sense for us economically. Frankly, in conversations with strategic partners, their interest was more significant at Carolina. You know, there was interest in Tennessee, but at the end of the day, the idea of having a plant in Carolina on top of a mindset, having an integrated facility all in one location is unique in the world.

Keith Phillips: And the fact that it's in the Southeast or in the US is exceptionally interesting, the strategic parties. So it just made sense. And from a tiny perspective for Carolina, we still have, you know, That things to go through from a permitting and approvals perspective, ultimately from a capital perspective, you know, it's a large capital project. We're, you know, we're kind of advancing toward the position where we'll put funding in place, but that's not going to happen this year in this environment.

Keith Phillips: It's just not the right environment for us to walk in funding. So I think that we don't we don't have a set timeline for Carolina at this stage, but I would say FID is very unlikely to happen in the next 24 months, just because the funding process will take that long and we're working on a measure pace for that. Okay, great. Thanks. That's very helpful.

Keith Phillips: And then kind of just shifting over to Ghana here. I guess, you know, how do you think about the offtake timeline there for that, maybe what you're looking for, kind of what you're targeting and kind of how you're balancing that project versus North Carolina. Now, I know you, you know, kind of pointed to lower lithium prices here, kind of making it tough for the industry across the board. Just kind of curious how you're balancing the two of the projects there, and then the offtake for Ghana.

Keith Phillips: Yeah, good question. I mean, so listen, the, the lawyer project in Ghana is a great project. It's, it's a lower cap-backs higher return on investor capital kind of project. Having said that, this project means some $1,000. The returns aren't sufficient for either partner to accelerate development there. So it'll happen, but it'll need a stronger environment, which I view is inevitable. And it's just a matter of time. So I think the most important news, I hear constantly that people are worried that we have a funding requirement at a lawyer right around the corner.

Keith Phillips: That is not true. That projects is not getting developed on that timeline. We still meet, we're still finishing off parliamentary ratifications and permanently work, a lot of engineering work. If the markets were to roll back, it's possible that could be in kind of FID stage as early as a year from now. And that, and I'd love for that to happen. This is a great project. We're confident we'll have a funding in place for it, but I think it's likely to take more time again in less markets, we're back.

Keith Phillips: But the funding feedback is very positive. This is a 360,000, ton of year low cost. It's by far the best located. And many of those are large entities that have capital. They can essentially provide to us in the form of advances to help us fund our capital. So I'm, my expectation is capital and develop there will be deferred, but that when it is, is developed, we will secure all of our funding for that project from optic parties on a non diluted basis.

Tyler DiMatteo: Okay, great. Thanks for the color. They're key to really appreciate it. I'll turn it back to the queue. Thanks.

Gregory Jones: Thank you. Your next question comes from the line of Greg Jones with BMO capital markets. Good morning, Keith and team.

Gregory Jones: I wanted to follow up on one of the prior questions around the Carolina timeline. Can you provide some guidance or estimation on when you think there might be an updated feasibility study that looks at this larger scale project or some details that might come out from the 15 study at Tennessee that could be used to help guide capital and other parameters around the project. Thank you very much. Thank you, Greg. Yeah, good question.

Gregory Jones: We don't have any current plans to publish an updated study. At some point, we'll do that. We're constantly updating our thoughts on that and we're currently doing some optimization studies. So, as an example, is 30,000 times the right size for that plan, or is something bigger or smaller for each train. [inaudible] and we'll continue to look at those options. Good, thank you for that, it's clear.

Gregory Jones: And just one follow-up for me, kind of staying on Carolina. You guys obviously received the state mind impairment recently, but could you remind me if there's anything else that needs to be done on the permit inside of things in Carolina? If I recall correctly, I think there was still some stuff related to rezoning and other things like that. Could you just remind all that stands currently? Yeah, listen, we need an integrated project, so you need the mind permit for the mining operation, we need an air permit for the chemical plant operation, we hope to secure that in the first half of next year.

Gregory Jones: As a reminder, we did apply for 60,000 tons coverage there, so and there's some other permits and then there is the rezoning process. I mean, obviously this is private land, it's currently zoned principally residential or agriculture, we need to rezone it for industrial and mining purposes. That's a process that we'll we'll advance at the right time and that may be maybe in 2025, maybe later depending on how we progress with permitting and some of the engineering designs we're doing.

Gregory Jones: So we want to be kind of fully transparent when we go through that process and really understand, you know, are the trains 25,000 tons or the 30, is the mine going to produce 242,000 tons or some different number, et cetera. So there's work to be done. Just in the environment we're in, I think you have to think about a project like Carolina where initial capital in the DFS was a billion, it's certainly going to be higher than a billion.

Gregory Jones: These are projects that are going to be, they require a different pricing environment, like we like we frankly had over most of the last three years, but but don't have today. So I think the timing perspective, you know, we'll be monitoring, you know, we're advancing the project toward a decision, but really being being careful and discload about that and ultimately any development decision will be based based on different market conditions and the availability of funding from strategic parties and lending sources. Got it. Super helpful overview.

Gregory Jones: That's it for me. That's a luck moving forward. Thanks, Matt.

David Becker-Bum: Your next question comes from the line of David Becker-Bum with CD Coven. Hey, Keith, thanks for taking my questions and for the details this morning. I was curious just if we could clarify, you know, progressing forward now, if I think about the footprint that you would have, obviously you'd have the benefits of NAL through the JV, and then, you know, if you were to FID, Carolina, and then integrate, you know, a Hydroxide Conversion Facility, which would be sort of co-located with Carolina, is the thought then that EWOIA would at this point not necessarily have a conversion partner associated with it, and then, if you were to continue with EWOIA, would just be, you know, either using like a tolling model or selling spasimen concentrates.

David Becker-Bum: It'll end up being higher than that, but the CAPEX is going to be very competitive. The operating cost will be quite competitive, and we're going to be at joint owner of that project and produce and sell spasimen concentrates into the market. Our expectation at this stage will be, and I think that the Atlantic Lithium our partner has a similar expectation. On their side, they're working through their own partnering process with Faroftay, is that we'll each have our own off-take party basically funding our share of capital in exchange for securing our share of the product, and in our case, we might be willing to commit all of our products for a period of time for five or six years, and if you're and there are parties around the world for whom that's pretty compelling because Davis, you know, just like we had the prior question about Tennessee, you know, when it's sort, but face to it, Caroline, and when we build that second plan, it will be important as large as me to fly locked up.

David Becker-Bum: And the same will be true for other people that are developing projects around the world now, so the availability material gone is really attractive. So yeah, you should, I would think about the warrior, a lot like maybe today, you think about NAL, we produce large mean we sell our material, the people like Tesla and LG Kim. We'll have other similar customers for the material from Ghana, and that's the business, that's our cool, for the time being our core business is watching me concentrate mining and production. And but eventually we're we're still focused on it with partners, developing the downstream side of the business.

David Becker-Bum: Yeah, I appreciate that clarification. And maybe following up on that a bit for my second question, and I guess it's a little bit philosophical, but as you look forward to Carolina, which is, you know, a bit of a crown jewel in your portfolio. Is there is there a contingency where you would consider and I ask this in the context of there's obviously some circularity and logic in North America with bringing on a spodium and concentrate mine without a conversion facility that would be IRA compliant.

David Becker-Bum: But obviously the conversion is the most capital intensive portion and arguably the lowest margin in return. Is there is there a scenario where you would consider bringing on the mine in a staggered fashion, whereas the conversion facility would be delayed, you know, years beyond that, or does it always have to be coming online and coincident with each other. You know, we've thought about different scenarios and we could obviously develop it in different scenarios.

David Becker-Bum: We think with Carolina in particular, you know, it's a good or body in an exceptional location and, you know, and the location is particularly conducive to chemical conversion. And that's what makes it interesting for strategic parties. So you think about battery companies, car companies, you know, other mining companies and lithium companies. It's a unique opportunity to build an integrated business. Ultimately, you know, when we're in a position to kind of outline what the funding will look like for Carolina lithium.

David Becker-Bum: I expect you're going to see very strong component of capital coming from one or more strategic partners. Ideally, ideally with one of them being somebody who can contribute significantly on the technical side, on the downstream business as well. So an ideal world will be and and and David that format could take a lot of the deal could take a lot of different forms. We could own 100% of the mine and say 50% of the chemical plant.

David Becker-Bum: We could own 50% of everything. We could do a lot of different things and those are the sorts of things we're kind of mulling around with different strategic parties. But their interest isn't in a spa gyming supply in North Carolina. They're interested in a lithium chemical supply in North Carolina in the South Eastern US. And and and and the project on integrative basis holds together. I mean where we are right now in Quebec, you know, anything else doing great.

David Becker-Bum: But but to your point when you're producing spa gym in in Quebec and you're shipping it to the customers who are principally in China right now. There's just a lot of economics that a lot is the transport industry and logistics industry. And in North Carolina, we can eliminate all that and capture it in the project and really improves the overall economics.

David Becker-Bum: No, I appreciate it. Thank you.

Noel Parks: Thank you, David. And your last question comes from the line of Noel Parks with two wee brothers. Hi, good morning. I just have a couple questions. I was thinking about, you know, in terms of funding. The hypothetical party you've been talking with for some time, you know, throughout the ups and downs of the, William Market, the last couple of years, to the degree that they're sideline now. How quickly, roughly, could you envision that turning around and then arriving at satisfactory new terms in the event we, we did get some clearer visibility as to a rebound on the lithium pricing.

Noel Parks: Is that something that is quarters worth of work away? Do you think? Of course, something that could be put together quite quickly just based on work you've done today. Yeah, good question. I guess, I guess what I would say is the parties that care for the most part still care pretty intensively right now. We're just not really interested in parting with substantial part of the economics based on kind of the current pricing environment.

Noel Parks: So it has been really insane last four or five years to see the interest of different parties evolve. You know, we know the big car companies. We know the big battery companies, cathode companies, et cetera. And and there's new and there are some other groups that are now interested that really worked a couple of years ago. It's quite interesting. How some of the people with the most interested when we first started talking to partners about Carolina two and a half, three years ago, one or two of them are still highly interested.

Noel Parks: One or two of them are less interested. But they're new parties who are all of a sudden quite interested. So there's no shortage of people. The parties that are that kind of want to pursue something. And it's just really a question of. Bringing it all together and our conversations continue in the team was in Tokyo and Seoul two weeks ago, seeing potentially interested parties and the interest is sincere and it's pretty deep.

Noel Parks: But I think what we're since we're in a position where we're not anxious to kind of develop the project right now anyway from a funding perspective and a market perspective. We just don't feel we're in a big hurry to bring that together. And again, then the nature of the strategic party we get may impact the nature of the debt funding we seek. And so it's a kind of it's a little bit of a circular process and an iterative process itself.

Noel Parks: But overall, I think to bring it all together the right way to develop the project responsibly and really protect returns for our shareholders. You know, we're certainly two plus years away from FID, which we're okay with this market market. But if the market was different, if the market hadn't gotten these levels, that could all happen more quickly. So the project is, you know, DFS complete money permit hand, you know, final steps kind of in reaching our perspective and really just waiting like several of the projects in the industry, maybe for a different market conditions.

Noel Parks: Right. Fair enough. Absolutely. And, you know, just in the discussion of a little while ago, you mentioned just an example, the demand for lithium for EV batteries and everything is still definitely on the ramp and you know, there is visibility into that. I just wondered, and sorry, you addressed this earlier and I just just, but thinking about sort of the energy storage. Part of the Lithium Market is separate from modality. Just the whole sort of slug of demand that we're going to see from continuing to handle intermittency of renewable sources as they're integrating in the grid.

Noel Parks: It's how we hear a lot in some quarters and just barely mention another is the broader storage market. So any thought on how that might help the case for Lithium sort of re-emerge sooner rather than later. Yeah, listen, I think there's a lot of people to study the easy demand for Lithium very deeply and not as many that do as much analysis on the ESS, but it is a huge market in a customer perspective, but obviously the extent energy storage complexes are being built at scale and require Lithium ion batteries or whether they require them or not.

Noel Parks: They will use, they will prefer Lithium ion batteries to the most part. It just impacts in a positive way demand for Lithium overall and that's good for us and that's a trend that's accelerating not declining. So yeah, I think what the important takeaway and as we think about our company where we are today and when we think it's a depressed market is Lithium demand growth whether it from EVs or continued growth in portables or ESS which is a huge opportunity is really strong.

Noel Parks: 15 to 20% cag are going forward for the next 5 or 10 years. We had a couple analysts from other firms send us their outlooks, their firms outlooks for demand growth for say copper or nickel or rares or other things. Copper people talk about copper which is a great commodity people talk about the shortages and how much more we're going to need. Copper is growing two or three percent a year. Lithium is growing 15 to 20 percent a year.

Noel Parks: We're going to get through this supply and digestion. I think sooner than people think and I think we're going to be back on our front foot where the band growth is going to be hard to satisfy for a long period of time and I think prices are going to respond to that. So ESS demand growth is very welcome. It's not something we spend a lot of time focused on but I think over time it's going to become a thicker component of the business.

Noel Parks: Great thanks. Thanks Noel. That concludes our Q&A session. I will now turn the conference back over to Erdeen for closing remarks. Thank you operator. Back concludes our call today. We thank you for your time and interest in Piedmont, Lithium. As a reminder you can find our earnings release presentation and a replay of this call on our website. Thank you. This concludes today's conference call. You may now disconnect.

Q2 2024 Piedmont Lithium Inc Earnings Call

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